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The HoopAI platform includes a built-in tax configuration system that lets you define tax rates, attach them to products, and have those rates automatically applied at checkout. Whether you sell locally with a single sales tax rate or internationally with multiple VAT and GST rates, the tax tools give you the flexibility to handle your obligations accurately.

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How taxes work in the store

Taxes in the HoopAI platform work as follows:
  1. You create one or more tax rates under Payments > Settings > Taxes.
  2. You attach applicable tax rates to individual products.
  3. When a customer checks out, the platform applies the product’s attached tax rates and adds them to the order total.
  4. Tax amounts are recorded on the order and visible in your transaction reports.
Taxes can be configured to be tax-exclusive (added on top of the displayed price) or tax-inclusive (already included in the displayed price). This setting is configured per product.

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Automatic tax calculation

For US-based merchants, automatic tax calculation can be enabled through Stripe Tax. When active, Stripe calculates the appropriate sales tax for each order based on the customer’s shipping address and your configured nexus addresses — the locations where you have sales tax obligations. Automatic tax and manual rates together: If you have both automatic tax and manual rates configured, the manual rates serve as a fallback. If Stripe cannot calculate a rate for a specific jurisdiction, the manual rate is applied instead. To use only automatic taxes for certain jurisdictions, remove those regions from your manual rate configurations.

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Creating manual tax rates

1

Navigate to Payments > Settings > Taxes

Click Payments in the left sidebar, then Settings, then Taxes.
2

Click Add Tax

Click + Add Tax to open the tax creation form.
3

Fill in tax details

Enter the following information:
  • Tax name — a descriptive label (e.g., “California Sales Tax,” “UK VAT,” “GST”)
  • Rate — the tax percentage, which the platform supports up to 4 decimal places (e.g., 7.1250%)
  • Description — optional internal note about this tax rate
  • Tax ID — the tax registration number issued by your tax authority
  • Tax agency — the name of the collecting authority (e.g., “California Department of Tax and Fee Administration”)
4

Save the tax rate

Click Save. The rate is now available to assign to products.

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Attaching tax rates to products

Once tax rates exist in the system, you attach them to specific products:
  1. Open the product in Payments > Products.
  2. Scroll to the Tax section.
  3. Enable the Attach Tax Rates checkbox.
  4. Select one or more tax rates from the dropdown list.
  5. Choose whether the price is tax-inclusive or tax-exclusive.
  6. Save the product.
At checkout, when a customer adds this product to their cart, the attached tax rates are calculated and displayed as a line item. The final order total includes the tax amount.

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Tax-inclusive vs. tax-exclusive pricing

Tax-exclusive (default): The price shown on the product page does not include tax. Tax is added at checkout as a separate line item. For example, if a product is 100with10100 with 10% tax, the customer pays 110 at checkout. Tax-inclusive: The price shown already includes the tax. The platform backs out the tax from the displayed price and shows it as a line item for transparency, but the customer’s total matches the displayed price. For example, if a product is listed at 100andistax−inclusiveat10100 and is tax-inclusive at 10%, the customer pays 100 (of which $9.09 is tax). Tax-inclusive pricing is common in markets like the UK and EU, where consumer-facing prices are typically shown VAT-included.

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Multiple tax rates per product

You can attach multiple tax rates to a single product. This is useful in jurisdictions with compound taxes — for example, some Canadian provinces have both a federal GST and a provincial PST. Both rates would be attached to the product and both would appear as separate line items at checkout, with their amounts listed individually for transparency. The platform displays rates to 4 decimal places for precision, but rounds final tax amounts to 2 decimal places (standard currency rounding) on the order total.

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Handling tax-exempt customers

For customers who are exempt from sales tax (such as resellers, nonprofits, or certain B2B buyers), the platform does not currently have an automated exemption workflow at the store checkout level. The recommended approach is:
  1. Create a tax rate of 0% named “Tax Exempt” or “Reseller Exempt.”
  2. When processing an exempt customer’s order, apply the 0% rate at the product level for their specific transaction, or process their order via invoice where you can manually adjust tax.
  3. Collect the customer’s tax exemption certificate and store it in their contact record as a file attachment.

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Using Stripe Tax for automatic calculation

If your Stripe account has Stripe Tax enabled, the platform can pass tax calculation responsibilities to Stripe for US orders:
  1. Enable Stripe Tax in your Stripe dashboard.
  2. Configure nexus addresses (the states where you have sales tax obligations).
  3. Assign product tax codes to your products. When creating a product in Payments > Products, select the appropriate Product Tax Code from the dropdown. These tax codes (such as “Physical good — general” or “Digital product”) tell Stripe Tax how to categorize each item for jurisdiction-specific tax rules.
  4. Stripe Tax calculates the correct rate for each order based on where the customer is located and applies it automatically.
Consult with a tax professional or accountant to determine your exact tax obligations before configuring rates. Tax rules vary significantly by location, product type, and business size — especially for interstate or international sales.
Tax amounts collected through the platform are recorded on each transaction in Payments > Transactions. You can export transaction data to share with your accountant or import into accounting software.
Last modified on March 5, 2026