> For the complete documentation index, see [llms.txt](https://docs.tip4serv.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tip4serv.com/sales-tax-and-vat.md). # Sales Tax & VAT ## Sales Tax & VAT #### Overview If you sell products or services to customers in certain countries or states, you may be required to collect taxes such as VAT or Sales Tax. These obligations may depend on factors such as your business location, tax registrations, physical presence, sales volume, and local registration thresholds. Tip4Serv helps you automate tax collection by allowing you to configure the countries, states, or tax schemes where your business is registered or required to collect tax. When tax collection is configured: * Applicable taxes are calculated automatically at checkout. * Taxes are shown on customer invoices. * Tax reports can be exported by country, state, or nexus. * You can track the revenue and taxes collected for accounting purposes. > A tax nexus is a country or state where your business has a legal obligation to register, collect, and report tax. It is not determined simply by where most of your customers are located. *** #### Sales Thresholds – When Are You Required to Register? Tax registration requirements vary by country and state. Some jurisdictions require registration as soon as your business begins making taxable sales, while others apply a sales volume, transaction count, or revenue threshold. If you use Stripe, you can monitor your progress toward certain tax thresholds from your [Stripe Tax Overview](https://dashboard.stripe.com/tax/overview). > Tax rules depend on your business location, the type of products or services sold, and whether your customers are businesses or consumers. Consult a qualified tax adviser if you are unsure where you must register. *** #### VAT for EU-Established Businesses Special rules apply to businesses established in the European Union that sell eligible goods or electronic services to consumers in other EU countries. **Below the €10,000 EU threshold** If your business is established in only one EU Member State and your combined eligible cross-border B2C sales remain below the EU-wide €10,000 threshold, you may generally apply the VAT rate of the country where your business is established. For example, a VAT-registered business established only in Bulgaria may apply 20% Bulgarian VAT to eligible sales made to private customers throughout the EU while remaining below the threshold. The €10,000 threshold applies to the combined eligible cross-border B2C sales made across the EU. Both the current and previous calendar year must be considered. **Above the €10,000 EU threshold** Once the threshold is exceeded, VAT must generally be charged using the rate applicable in each customer’s EU country. You can register for the European Union One-Stop Shop (OSS) to report and remit VAT collected from customers in different EU countries through a single VAT return. Once your OSS registration is active, select **OSS** instead of configuring only your business’s home country. > Businesses may choose to apply the customer’s local VAT rate before exceeding the €10,000 threshold. Ask your tax adviser whether this option is appropriate for your business. *** #### How to Enable Tax Collection If your business is registered or legally required to collect VAT or Sales Tax: 1. Go to your [Tax Nexus Dashboard](https://tip4serv.com/dashboard/tax-nexus). 2. Click **Add a tax nexus**. 3. Select the appropriate tax registration: * A **country** * A **state or province**, where applicable * **OSS**, if your business is registered under the European Union One-Stop Shop scheme Only add locations or schemes where your business is registered or legally required to collect tax. > Adding a country nexus applies tax according to the configuration supported for that country. Selecting OSS allows Tip4Serv to apply the appropriate VAT rate based on the EU customer’s country. *** #### The “Sales Tax ID or VAT Registration ID” Field When adding a nexus, you will see a field labelled **Sales Tax ID or VAT Registration ID**. * This field is required but is not automatically validated by Tip4Serv. * You may enter: * Your official Sales Tax ID or VAT registration number * A reference memo, such as “Monitor only” or “France Nexus” This field is for your reference and does not affect the tax rate calculation. > Entering a tax number in Tip4Serv does not register your business with a tax authority. You must complete any required registrations separately. *** #### How Tax Is Calculated Once you have configured one or more nexus locations, Tip4Serv determines whether tax should be applied based on: * The buyer’s location * The countries, states, or schemes you configured * The applicable tax rules and rates supported by Tip4Serv If tax applies, the appropriate amount is calculated and included in the final price displayed at checkout. **Important:** Taxes are included in the price shown to the customer before checkout. They are not added on top of the displayed price or charged as a separate fee. *** #### My Bills – Accounting & Tax Overview The [My Bills](https://tip4serv.com/dashboard/my-bills) page provides a consolidated monthly overview of the accounting documents generated by Tip4Serv. From this page, you can access your official platform fee invoices and download supporting CSV files, including: * Detailed payment lists * Revenue summaries * Tax collection summaries These documents can help you reconcile your Tip4Serv activity with your accounting records and prepare your VAT or Sales Tax returns. The monthly reports can also be shared with your accountant. *** #### Exporting Tax Reports by Date Range To export information for your tax declarations: 1. Go to your [Payments Dashboard](https://tip4serv.com/dashboard/payments). 2. Select the required date range. 3. Download the report containing: * Total revenue by country, state, or nexus * Total tax collected by country, state, or nexus *** #### Key Points * You are responsible for determining where your business must register for tax. * You are responsible for reporting and remitting the taxes collected. * Tip4Serv helps calculate and collect taxes but does not register your business or remit taxes to tax authorities on your behalf. * Adding a nexus in Tip4Serv does not constitute an official tax registration. * Taxes are included in the prices displayed to customers. * Tax rules may differ depending on the customer’s location, B2B or B2C status, and the products or services being sold. * Consult a qualified accountant or tax adviser if you are unsure which nexus or VAT scheme to configure. *** #### Useful Links * [Add or manage a tax nexus](https://tip4serv.com/dashboard/tax-nexus) * [Access platform fee invoices and accounting CSVs](https://tip4serv.com/dashboard/my-bills) * [Export tax and revenue reports](https://tip4serv.com/dashboard/payments) * [Monitor your Stripe tax obligations](https://dashboard.stripe.com/tax/overview) * [European Commission – VAT One-Stop Shop](https://vat-one-stop-shop.ec.europa.eu/index_en)