> For the complete documentation index, see [llms.txt](https://docs.chord.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.chord.co/chord-oms/chord-oms-overview/taxes/tax-automation-with-stripe-tax.md).
# Tax Automation with Stripe Tax
### Introduction
Stripe Tax is a product that automatically collects taxes from your customers based on their location. In addition, Stripe Tax lets you view all the countries where you do business. Allowing you insight into which countries warrant tax collection and offering an easy-to-file/remit your taxes during tax time.
### Configuration
To set up Stripe Tax, you need to configure your tax settings within the [Dashboard](https://dashboard.stripe.com/settings/tax) and, depending on your integration, add one line of code.
* Review and confirm that your origin address and pieces of information are correct.
* The origin address is where your business is located or, if you sell physical goods, the address you are shipping goods from.
* Choose a tax category to apply the tax rate correctly.
* **Default product tax category:** A product tax category is a classification of your product or service for Stripe Tax. Stripe uses this to ensure the correct tax rate applies to your transactions. Please refer to the tax category [document](https://stripe.com/docs/tax/products-prices-tax-categories-tax-behavior) from Stripe.
* Add an active tax registration when you’ve exceeded a tax threshold.
* When your business exceeds a tax threshold (the sales volume or the number of transactions required to start collecting tax), you must register with the local tax authority before adding tax to your transactions.
* Add Stripe Tax to your integration to start collecting tax.
* The final step in setting up Stripe Tax is to enable automatic tax on your Stripe integration.
### Setting up your taxes
Navigate to Stripe--> More--> Tax or click [here](https://dashboard.stripe.com/settings/tax)
Click on **Get Started**
Getting Started
Under Business Information click on\*\* Add origin address \*\*
Business Information
and provide the address of your business and click **Save.**
Business Address
Once your address is provided, you can schedule to start collecting taxes
Select your tax category in the dropdown to calculate the right amount of tax
Select a shipping tax code depending on your chosen category. The default shipping tax code is used for calculating the tax on your shipping fees.
Under Tax Registrations click **Add Registration**
Select the Country and the States if applicable
On the next screen you'll see the taxes that will be collected for that specific **State**
You can either start collecting taxes immediately or schedule it at a later date.
{% hint style="info" %}
Stripe will automatically monitor your transaction volume and will make recommendations for which states to enable.
{% endhint %}
You can repeat the process for all other States you want to collect taxes from.
{% hint style="info" %}
To get more information about how to register in different markets, check [Stripe document](https://stripe.com/docs/tax/registering#list-of-state-and-country-registration-sites)
{% endhint %}
You have just finished setting up Automated taxes in Stripe!
### OMS Configuration
Enabling automatic tax on your Chord account is only a few clicks away!
Navigate to your OMS and click on Settings --> Store
STRIPE\_AUTOMATIC\_TAXES\_ENABLED configuration option has been added to your Environment Variables.
Setting that value to **true** is all it takes!
---
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