Automatic California district sales tax: Stripe Tax integration for checkout and renewals

Status: Awaiting reply · Asked by Peter Shannon on · 0 views

Peter Shannon — Question ·
Hello Pabbly team,

We sell software subscriptions through Pabbly Subscription Billing using Stripe and PayPal. We are preparing for California's January 1, 2027 digital-products tax changes and need to automatically calculate and charge the applicable California state, local, and district sales tax based on the customer's full address. California tax should apply only to California customers.

We reviewed the Tax settings and documentation. They describe manually configured country/state percentages, but California district rates vary by address, so a single statewide percentage does not meet our requirement.

Could you please confirm the following for Pabbly Subscription Billing (not just Pabbly Connect)?

1. Does the hosted checkout support Stripe Tax Basic for automatic address-based tax calculation and collection? If yes, please provide the exact setup steps and confirm whether any change beyond enabling Stripe Tax in Stripe is required.

2. Does this work for both new purchases and automatic renewals of existing subscriptions? How are full billing addresses collected, address changes handled, and tax rates recalculated on renewal? Please clarify any differences between Stripe and PayPal payments.

3. If there is no native Stripe Tax integration, is there another supported tax provider or a supported API/callback that lets us calculate tax BEFORE each initial payment and renewal, include it in the amount charged, and show it separately on the invoice? Please identify the specific integration or API fields. A workflow triggered only after a successful payment would not solve collection at checkout.

4. Is there a supported service integration for automatically filing California returns and remitting the collected tax? Please distinguish calculation/collection from filing/remittance and identify any separate fees or subscriptions required.

CDTFA guidance:
https://cdtfa.ca.gov/industry/retailers-and-purchasers-of-digital-products/retailers.htm

Please provide a clear supported/unsupported answer for each item, with documentation or configuration steps. If these capabilities are not available, is support planned before January 1, 2027?

Thank you,
Peter

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