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Finance

Tax Collection & Filing

How Bag handles end-to-end tax compliance across all supported jurisdictions.

Tax Collection & Filing

Bag handles end-to-end tax compliance across all supported jurisdictions.

What We Handle

Tax Registration

We maintain tax registrations in 100+ countries. You don't need to register for VAT, GST, or sales tax in any jurisdiction where you sell.

Automatic Tax Calculation

Tax rates are calculated in real-time based on:

  • Customer location
  • Product type
  • Local tax rules (VAT, GST, sales tax)

Tax Remittance

We file and remit all collected taxes to local authorities on your behalf. This includes:

  • VAT (EU, UK, and other regions)
  • GST (Australia, New Zealand, India, Singapore, etc.)
  • Sales tax (US state and local)
  • Other jurisdiction-specific taxes

Income Tax Reporting

Because Bag is the legal seller, we also handle income tax obligations tied to the transaction. Your company receives a consolidated settlement invoice for accounting purposes—not individual transaction records.


What You Receive

At the end of each billing cycle, you receive:

  • One consolidated settlement invoice from Bag
  • Clean revenue recognition for your books
  • No need to track per-transaction tax liabilities

You do not receive invoices in your company's name. All customer-facing invoices are issued under Bag as the seller.


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