Tax calculation
Tax calculation computes and collects sales tax and VAT on every Order with Stripe Tax, on the Startup’s own account as seller of record.
Each Startup collects and remits its own tax.
Contract
| Clause | Terms |
|---|---|
| Seller of record | The Startup, on its own connected Stripe account. Order.merchantOfRecord names it on every receipt. |
| Computed | Order.place computes tax for the buyer’s location and the Offer’s tax category, then records Order.tax and Order.taxJurisdiction before payment. |
| First sale | A digital sale to a consumer in the EU or the UK is taxed from the first sale, because no threshold applies there. Order.taxJurisdiction names the country. |
| Thresholds | When sales in a state or country cross its threshold, Tax opens a registration Credential. Order.place collects there once the Credential is granted. |
| Facilitator | On a Marketplace, the Startup collects as marketplace facilitator where the law names one. The Supplier collects elsewhere, and Order.tax records it either way. |
| Refunds | Order.refund returns the tax in proportion to the amount refunded. |
| Returns | Tax filing prepares every return, and a Human signs any sworn declaration. |
Verbs
| Verb | Object | Event |
|---|---|---|
| Order.place | Order | Order.placed |
Interfaces
Example
A b2c SaaS for household budgets sells a $10 monthly plan. A buyer in the EU pays $11.90 at checkout: Order.tax is $1.90 and Order.taxJurisdiction is EU-DE. The quarterly return files without a person touching it.