# Tax calculation

URL: /systems/finance/tax-calculation · Id: `capability: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.

Tax calculation computes and collects sales tax and VAT on every [Order](/business/nouns/order) with Stripe Tax, on the [Startup](/business/nouns/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`](/business/nouns/order/place) computes tax for the buyer’s location and the [Offer](/business/nouns/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](/systems/tax) opens a registration [Credential](/business/nouns/credential). [`Order.place`](/business/nouns/order/place) collects there once the Credential is granted. |
| Facilitator | On a [Marketplace](/products/templates/marketplace), the Startup collects as marketplace facilitator where the law names one. The [Supplier](/business/nouns/supplier) collects elsewhere, and `Order.tax` records it either way. |
| Refunds | [`Order.refund`](/business/nouns/order/refund) returns the tax in proportion to the amount refunded. |
| Returns | [Tax filing](/workflows/processes/books/tax-filing) prepares every return, and a [Human](/business/nouns/human) signs any sworn declaration. |

## Verbs
| Verb | Object | Event |
| --- | --- | --- |
| [Order.place](/business/nouns/order/place) | [Order](/business/nouns/order) | [`Order.placed`](/business/events/Order.placed) |

## Interfaces
- [API](/code/api/reference)
- [SDK](/code/sdk/reference)
- [CLI](/code/cli/reference)
- [MCP](/code/mcp/reference)

## Example
A [b2c](/business/motions/b2c) [SaaS](/products/templates/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.