Tax Handling

This page covers how the Split Pay Plugin handles taxes in the WooCommerce checkout.

We now offer Tax Handling in the Split Pay Plugin. It can be enabled by checking the box for Tax Transfers and selecting All (100%) or Partial tax transfer in the dropdown.

Leaving Tax Transfer Disabled (Default)

By default, when left unchecked, 100% of taxes will be retained by the Stripe Platform Account, meaning the WooCommerce Store admin is responsible for reporting 100% of sales tax.

All (100%) Tax Transfer

When Tax Transfer is enabled by checking the box and All (100%) Tax Transfer is selected in the dropdown box, 100% of the taxes will be transferred to connected accounts, calculated proportionally based on transfer values.

This is best for cases in which Vendors (connected accounts) should be responsible for reporting the tax on a transaction.

Example of 100% Tax Transfer

Let's say you have a $100 product with a 10% tax rate applied. That means $10 in tax:

Order Subtotal: $100

Tax: 10%

Order Total: $110

We'll use an example with 3 connected accounts at the Global or Product level. We can assume any transfer values, but we'll use these for the calculations:

• Connected Account 1: 10%

• Connected Account 2: 25%

• Connected Account 3: $15

That's $10 + $25 + $15 = $50 Subtotal Transfer Amount (unrelated to tax), which equates to 50% of the subtotal of $100 in this example.

In order to calculate how much each connected account receives of the tax, we'll calculate proportionally:

Connected Account 1: $10 / $50 = 20% of tax

Connected Account 2: $25 / $50 = 50% of tax

Connected Account 3: $15 / $50 = 30% of tax

So, 100% of the tax will also be transferred, and these are the resulting values:

Account	Transfer Amount	Tax Transfer Amount	Total Transfer Amount
Connected Account 1	$10	$2	$12
Connected Account 2	$25	$5	$30
Connected Account 3	$15	$3	$18
Totals	$50	$10	$60

Partial Tax Transfer

When Tax Transfer is enabled by checking the box and Partial Tax Transfer is selected in the dropdown box, the product transfer values will also be applied to the tax.

This is best for cases in which the WooCommerce Store Owner and Vendors (connected accounts) split tax reporting responsibility based on the amount each receives from a transaction.

Example of Partial Tax Transfer

Let's say you have a $100 product with a 10% tax rate applied. That means $10 in tax:

Order Subtotal: $100

Tax: $10

Order Total: $110

We'll use the same example with 3 connected accounts at the Global or Product level. We can assume any transfer values, but we'll use these for the calculations:

• Connected Account 1: 10%

• Connected Account 2: 25%

• Connected Account 3: $15

That's $10 + $25 + $15 = $50 Transfer Amount, which equates to 50% of the subtotal.

In order to calculate how much each connected account receives of the tax, we'll simply take the transfer values for the product and turn them into percentages:

Connected Account 1: $10 / $100 = 10% of tax

Connected Account 2: $25 / $100 = 25% of tax

Connected Account 3: $15 / $100 = 15% of tax

So, 50% of the tax will also be transferred, and these are the resulting values:

Account	Subtotal Transfer Amount	Proportional Tax Transfer Amount	Total Transfer Amount
Connected Account 1	$10	$1	$11
Connected Account 2	$25	$2.50	$27.50
Connected Account 3	$15	$1.50	$16.50
Totals	$50	$5	$55