# Sales Tax

If you live in a state where Sales Tax is collected, BDP connects with [Stripe](https://stripe.com/) to simplify the process and capture the appropriate tax. Refer to Stripe's documentation to "Set up Stripe Tax" within your account:

{% embed url="<https://stripe.com/docs/tax/set-up>" fullWidth="false" %}

&#x20;Once you have Set Up Stripe Tax, switch on **Enable Sales Tax** within BDP

* *\*\*FYI - a small test transaction will be sent & cancelled in order to test back-end sales tax functionality when enabling*
* Once Sales Tax is enabled, you'll select your **Default Material Tax Category** and determine whether you need to distinguish between material and **Separate Delivery Tax**
* Once Sales Tax is enabled, refer to your [Products](https://docs.bulkdelivery.pro/products) inventory where a field for **Sales Tax Code** will now be exposed. This gives you the option to attach a specific Sales Tax Code to each Product, including coding items as *Nontaxable* where appropriate.&#x20;
* Watch as Sales Tax is collected effortlessly, appearing as a separate line item for the customer at checkout