Compliance & Payouts
Understand Tax Handling
How Bag calculates and collects VAT, GST, and sales tax as a Merchant of Record.
Understand Tax Handling
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As a Merchant of Record, Bag is responsible for collecting and remitting taxes on your behalf. We use Numeral to calculate VAT, GST, and sales tax based on the customer's location. Tax is calculated at checkout and included in the total amount.
For programmatic tax calculation, see the Tax Quote API and the Build a Custom Checkout guide.