Taxation & Compliance

Bags acts as the Merchant of Record (MoR), meaning we assume the liability for tax calculation, collection, and remittance globally. You are not required to integrate third-party tax engines like Stripe Tax or TaxJar.

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Global Tax Engine

• Automatic Calculation: Taxes are calculated in real-time based on the customer's country and state across 100+ countries.
• Compliance-as-a-Service: We handle the filing and legal regulations for each geography. You focus on your code; we handle the tax man.
• Zero Integration Overhead: No extra configuration is needed to "turn on" new regions. Our API detects user location and applies the correct jurisdictional rules automatically.

Note: Because Bags is the MoR, the tax responsibility sits with us, saving your startup from the high costs of international tax consultants.

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