Tax Settings

OpenMeter relies on integrations to calculate taxes. Stripe users can automate tax calculations with the Stripe integration.

#Billing Profiles

OpenMeter's Billing Profiles allow you to define how taxes, invoices, and payments are handled across your customer base. This feature is useful if you have multiple billing requirements (e.g., multiple payment providers, multiple Stripe accounts, various tax rules or different invoicing schedules).

By default, OpenMeter assigns a default billing profile to every customer. If you need to customize billing for certain customers—such as using different Stripe accounts or applying specialized tax configurations—you can create additional billing profiles and assign them to those specific customers. When a customer has its own billing profile, it overrides the default.

Any changes made to the default billing profile affect all customers who don't have a custom profile, b ut do not affect customers already assigned a unique profile.

In practice, most businesses rely on a single default billing profile for simplicity.

#Tax Settings

OpenMeter supports the following tax settings:

• Tax Inclusion: The price includes or excludes Tax.
• Tax Code: The tax code to use for the item.

In OpenMeter, you can define the tax behavior on multiple levels, from lowest to highest precedence:

• Payment Provider: Fallback to the tax behavior of the Payment Provider like Stripe
• Billing Profile: Define the default tax behavior, if any, for all customers using the Billing Profile
• Plan Rate Card: Override the default tax behavior on a per Rate Card basis
• Subscription Rate Card: Override the default tax behavior on a per-subscription basis
• Invoice: Override the tax behavior per invoice line item

We recommend setting the tax behavior on the Payment Provider level if you use Stripe for tax calculation. Tax behavior is optional at the billing profile, plan rate card, and subscription rate card levels.

#Stripe Automatic Tax Calculation

You can enable automatic tax calculation for your invoices using Stripe as a payment provider. Tax calculation is based on the customer's situation, location, product type, and other factors, so always consult a tax professional.

To enable automatic tax calculation in Stripe, make sure:

• You consult a tax professional to ensure you comply with tax laws.
• You configured tax on your Stripe account.
• You reviewed default tax settings in your Stripe account.
• You installed the Stripe App in OpenMeter
• You set the Stripe App to be the default default billing profile
• You collect tax information from your Customers at onboarding (address, VAT number, etc.)

You can use the Stripe Checkout Session to collect tax information from your customers.

You can read more about Stripe Tax in their documentation.