Why Does the Tax Amount in Taxually Differ from Stripe Tax?

If you’ve noticed a difference between the tax amounts shown in Taxually and what you see in Stripe Tax (when running the itemized tax report from the Stripe Tax dashboard), don’t worry—it’s not uncommon. These differences usually come down to how tax is calculated or interpreted across platforms. Below are some common reasons:

1. Sales to Monaco (Treated as France for VAT)

Stripe Tax currently doesn’t support tax collection for Monaco, but for VAT purposes, Monaco is considered part of France. This means that some sales to Monaco may still be subject to French VAT. Taxually recognizes and correctly applies tax to these transactions, which may result in higher totals compared to Stripe Tax.

2. Currency Conversion Differences

Tax amounts must be reported and paid in the local currency of each jurisdiction.

• Taxually uses official exchange rates published by each tax authority on the date of the transaction.

• Stripe Tax may use a different rate source or calculation method.

This can lead to small differences between the systems, but Taxually always reflects the most accurate and compliant amount.

3. Missing or Incomplete Address Information

If a transaction doesn’t include complete address details (like country, state, or ZIP code), it may not be assigned to a specific jurisdiction in Taxually. These transactions are excluded from reporting until full tax location data is available. To prevent this, make sure all transactions include complete and accurate address information.

4. Manual Invoices Not Processed by Stripe Tax

If you create manual invoices in Stripe or manual tax rates set up in Stripe Tax, these transactions:

• Won’t appear in the data Stripe sends to Taxually

• Can’t currently be included in your tax return by Taxually

5. Time Zone Differences

Taxually processes transactions using UTC (Coordinated Universal Time) for reporting purposes, while Stripe may use your local time zone. This can occasionally result in a transaction appearing in a different reporting period depending on its timestamp. Learn more about how Taxually uses time zones →

✅ Summary

? Still Unsure?

If you’re seeing unexpected differences, feel free to contact our team. We’ll help you reconcile the numbers and make sure everything is on track.

There can be a few reasons why the tax amount calculated by Taxually differs from what you see in Stripe Tax. Here are some common examples:

1. Sales to Monaco: While Stripe Tax doesn’t currently support tax collection for Monaco, it’s important to note that Monaco is treated as part of France for VAT purposes. This means that certain transactions to Monaco may still be subject to VAT. Taxually’s system identifies these transactions and applies VAT where required, which may cause a difference in the amounts you see.

2. Currency Conversions: Taxes must be paid to the relevant tax authority in the local currency of that jurisdiction. Currency conversion rates can vary depending on the source of the exchange rate. Taxually’s software always uses the official exchange rate published by the respective tax authority on the date of the transaction, ensuring the most accurate calculation for compliance. Stripe Tax may use a different conversion rate, leading to slight variations in the tax amounts.

3. In some cases, transactions may lack key address details, making it impossible to determine where the tax should be paid. When this happens, the transactions are not reported to any jurisdiction. To avoid these discrepancies, ensure that all transactions have complete and accurate tax information.

4. Manual Transactions Without Stripe Tax: If you manually create invoices and have disabled Stripe Tax for these transactions, they will not appear in the transaction report that Taxually retrieves from Stripe. As of now, we do not support including these manual transactions in your tax returns, which can cause discrepancies between the two systems.

5. Time zone differences: Taxually uses UTC as a global time zone for tax reporting purposes, which can sometimes lead to differences. Learn more about how Taxually uses time zones.