Create invoices with Connect

With Connect, you can create invoices for connected accounts, optionally taking fees in the process.

Learn more about Connect

Dont know much about Connect? Check out our Overview article.

You can create invoices for connected accounts that use direct charges or destination charges. You can also take an application fee on these invoices.

Note

Invoice transactions are based on Invoicing pricing.

Create an invoice using direct charges

To create an invoice that directly charges on a connected account, create an invoice while authenticated as the connected account. For this to work, the customer must be defined on the connected account.

As with creating a direct charge on a connected account, you can create a customer on a connected account by using either the platforms publishable key or the connected accounts publishable key. You can also create a token by using shared customers. When you use direct charges, the connected account is responsible for the cost of the Stripe fees, refunds, and chargebacks.

Create an invoice using destination charges

To create an invoice that charges on the platform and creates automatic transfers to a connected account, create an invoice while providing the connected account ID as the transfer_data[destination] value.

For this to work, the customer must be defined on the platform account, and you must create the connected account token by using the platforms publishable key. When using automatic transfers, the platform is the business of record.

Display Connected Account Tax IDs and Business Details on your Invoices

Certain regions have regulatory requirements for businesses to show their tax IDs and other business details on customer-facing documents.

In some cases, you can fulfill these requirements by displaying information about a connected account instead of information about your platform. The following steps show how to render a connected accounts tax ID and business details on invoice emails, invoice PDFs, Hosted Invoice Pages, and invoice receipts:

Create tax IDs for your connected account.
Set default tax IDs for your connected account.
Specify the connected account either using the on_behalf_of parameter or as the issuer on existing or new invoices, subscriptions, and subscription schedules.

Create tax IDs for your connected account

The following example creates a single tax ID for the connected account. Stripe stores the tax ID on the connected account. To create additional tax IDs, call the endpoint again.

Set default tax IDs for your connected account

Stripe automatically pulls default tax IDs from the invoice issuers account during finalization unless account_tax_ids is already set on the invoices.

You can set the tax IDs stored on the connected account as the default tax IDs for that account. The following example sets existing tax IDs as default tax IDs:

Set issuer on existing or new invoices, subscriptions, and subscription schedules as the connected account

The following example sets issuer on an existing subscription. During invoice finalization, subscription invoices pull in the issuers default tax IDs:

The following example sets issuer during invoice creation:

Alternatively, the on_behalf_of parameter also prints a connected accounts details on the invoice email, invoice PDF, Hosted Invoice Page, and invoice receipt.

Set account tax IDs on existing or new invoices, subscriptions, and subscription schedules

You can specify account_tax_ids for invoices, subscriptions, and subscription schedules to override the default tax IDs. The following example sets account_tax_ids on an existing subscription:

The following example sets account_tax_ids during invoice creation:

Create tax IDs stored on the platform for your connected account

The tax ID you create is stored on the platform account instead of the connected account. The following example creates a single tax ID for the connected account without using the Stripe-Account header:

Collect application fees

On the invoice, you can optionally withhold an application fee. The following example shows an application_fee_amount for an invoice with a direct charge on the connected account:

This example shows an application_fee_amount for an invoice with a destination charge:

Configure invoice payment methods

Manage the invoice payment methods your connected accounts can use. To enable a default list of payment methods:

Go to Settings > Billing > Invoice.
In the Default payment methods section, click the Connected accounts payment method configuration drop-down.
Select Default to enable Stripe to provide the default configuration of payment methods.

Your connected accounts still have the ability to enable and disable individual payment methods after you enable the default configuration. You can also manage the payment methods of individual connected accounts using the payment method configuration API.

If your integration uses dynamic payment methods, you can create your own payment method configuration. To learn more, see Multiple configurations for your Connect accounts. If you create a custom payment method configuration, it displays as an option in the Connected accounts payment method configuration drop-down.

Make the connected account the settlement merchant

To make the connected account the settlement merchant, charge the customer using the on_behalf_of parameter when you create or update the invoice. You must set on_behalf_of in the API before finalizing an invoicethe Dashboard doesnt have an interface for invoices you send on behalf of connected accounts.

Setting the on_behalf_of parameter applies the branding, contact information, and account tax ID of the connected account to the invoice email, invoice PDF, Hosted Invoice Page, and invoice receipt. However, when you use on_behalf_of in a sandbox, emails arent sentsimilar to standard invoices sent using the API. While testing in a sandbox, you can verify that Stripe created an invoice by checking the Invoices page of the Dashboard.

To collect payments on behalf of the connected account, the connected account also needs to have account capabilities enabled for the relevant payment methods. You can automatically transfer payments for invoices created on behalf of the connected account by using destination charges. For more information about the on_behalf_of parameter, refer to the relevant Connect documentation:

For automatic transfers to the connected account, refer to the on_behalf_of parameter details in the Create a charge guide.
For information on how to transfer payments manually, refer to Transfer availability.
For a list of account capabilities that are required to collect payments on behalf of the connected account, refer to Payment method capabilities.

The following example shows how to use the on_behalf_of parameter for a new invoice by using separate charges and transfers:

As with standard destination charges, you can set an application_fee_amount on invoices. This example shows how to use on_behalf_of with a destination charge and application fee.

Invoices created on behalf of a connected account dont support bank transfers payment methods, such as ACH Credit Transfer and paper checks.

Integrate tax calculation and collection

You need to first determine which entity is liable for tax. The entity thats liable for tax might be your connected account or the platform, depending on your business model. To learn more, see Stripe Tax with Connect.