When Does Tax Collection Begin on a Tax Engine Stripe Integration?
Updated 10 days ago
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If you're on a tax-engine Stripe integration, Kintsugi is responsible for collecting sales tax on your Stripe invoices. A common question is: once you click "Register" for a state, when does Kintsugi actually start collecting tax?
This article explains how registration status maps to tax collection behavior.
Registration statuses and tax collection
When you submit a registration request in the Kintsugi dashboard, the state moves through a series of statuses. Here's how each one affects tax collection on your Stripe invoices:
Registration Status | Tax Collected? | Notes |
|---|---|---|
Registering / Processing | ✅ Yes | Kintsugi begins collecting tax once your registration is actively being processed. |
Validating | ✅ Yes | Tax collection continues while Kintsugi validates the registration. |
Registered | ✅ Yes | Registration is complete. Tax collection continues as normal. |
Awaiting Clarification | ❌ No | Kintsugi needs additional information from you before proceeding. Tax collection is paused for this state. |
VDA (Voluntary Disclosure Agreement) — not yet Registered | ❌ No | VDA registrations require full completion before tax collection begins. |
No registration | ❌ No | Kintsugi will not collect tax in a state where no registration exists. |
Bottom line: For standard (non-VDA) registrations, tax collection typically begins once your registration moves into active processing; no need to wait for the state to reach "Registered."
Prerequisites for tax engine Stripe tax collection
Level 2 (tax engine) tax collection on your Stripe integration requires two things to be in place before it activates at all:
At least one completed (Registered) registration. Stripe tax engine must be enabled in your integration, and this requires at least one state to be fully registered.
Complete organization details. Your organization profile in Kintsugi must be fully filled out.
If either of these is missing, tax will not be collected on your Stripe invoices regardless of other registration statuses.
What happens during the registration window?
If you submit a registration request and the state is actively being processed, Kintsugi will collect tax on transactions in that state during the registration period. This means you generally will not have a gap in tax collection between submitting your request and completing registration, as long as the registration is actively being processed.
The exception is when Kintsugi needs additional information from you (the status moves to Awaiting Clarification). In that case, tax collection pauses until the clarification is resolved and processing resumes.
VDA registrations
Voluntary Disclosure Agreements follow a different process. Tax collection for VDA registrations does not begin until the registration is complete and marked Registered. If your registration involves a VDA, please account for this delay when planning your compliance timeline.
Questions?
If you're unsure about the status of a specific state registration or have questions about your tax engine Stripe setup, click the chat bubble in the bottom-right corner to speak with our support team.
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