Global Tax Compliance for Reselling Products in Sparkforge
Sparkforge Tax Compliance (beta) uses Stripe Tax to collect, calculate, and report sales tax across 100+ countries, US states, and Canadian provinces — agencies remain responsible for remitting collected tax.
Tax Compliance is a Sparkforge feature that lets agencies manage sales tax collection and reporting across multiple jurisdictions. It is powered by Stripe Tax and currently supports 100+ countries, US state-level registrations, and Canadian province-level registrations.
Beta: Tax Compliance is in beta and available to select agencies. It will roll out more broadly in upcoming releases.
What you can do
- Collect tax from sub-accounts on wallet recharges or actual monthly usage.
- Manage tax registrations and product tax codes from the Sparkforge dashboard.
- Generate and download tax invoices per sub-account and jurisdiction.
- Sell internationally across multiple tax jurisdictions.
Tax remittance is your responsibility. This feature helps you collect and report accurately. Remitting collected tax to the relevant authorities is on the agency.
Before you begin
1. Every sub-account needs a valid billing address
Tax jurisdiction matching depends entirely on the sub-account billing address, including a valid zip or postal code. Without a valid address on file, the system cannot apply any tax rules.
2. You need a connected Stripe account
Tax Compliance uses Stripe Tax for registration, calculation, and reporting. The agency's connected Stripe account is required for every operation.
3. Register jurisdictions in Stripe Tax first
Complete jurisdiction registration in Stripe before configuring tax collection in Sparkforge. Sparkforge syncs and displays your registered jurisdictions automatically.
4. Stripe Tax may add fees
Automatic collection mode uses Stripe Tax for calculations. Depending on your Stripe plan, Stripe Tax may apply per-transaction fees. Review your Stripe plan before enabling automatic mode.
Setup walkthrough
- Open Agency Settings.
- Go to Settings > Stripe.
- Open Settings > Stripe > Tax Compliance. You will see all jurisdictions you configured in Stripe Tax.
- Select Configure Tax for the jurisdiction you want to start with.
- Choose a Collection Mode.
- Choose a Tax Treatment for usage products. On Recharge charges tax when a sub-account adds funds (a $10 top-up at 20% bills $12 — $10 to wallet, $2 to tax). At Month End calculates tax on actual usage and charges the wallet at the start of the next month, which can drive a negative balance and trigger auto-recharge.
- Choose Taxable Products. Use preset tax codes from Stripe or customize per product. Mark items non-taxable as needed.
- Complete the Legal Confirmation. This acknowledges Stripe Tax handles calculations and that the platform does not guarantee tax accuracy. Click I Agree to finish.
Choosing between recharge and month-end tax
| Treatment | How it works | Best for |
|---|---|---|
| On Recharge | Tax is added at the time the sub-account tops up the wallet | Predictable billing where the client sees tax on each recharge |
| At Month End | Tax is calculated on actual monthly usage and billed at the start of the next month | Usage-heavy accounts where tax should match real consumption |
Frequently Asked Questions
Which countries and jurisdictions are supported?
Can I have different tax settings per jurisdiction?
What happens when I switch from On Recharge to At Month End?
Can I exempt specific products from tax?
Who actually remits the tax to authorities?
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