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A. What is sales tax?

B. How sales taxes are collected on ShopBase?

C. Understand Merchant of Records


A. What is sales tax?

A sales tax is the tax paid to the governing body for sales of particular goods and services. Sellers usually collect sales taxes from the buyers at the point of sales, then pass them on to the government.

B. How sales taxes are collected on ShopBase?

With two ShopBase Payments' processors, Stripe and BlueSnap, there're two ways sellers might pay the customers' taxes to the government:

ShopBase Payments by BlueSnap: Merchants who are not from USA, Canada, Latin America, Europe, Australia will be supported by BlueSnap to collect sales taxes from buyers and pay to their local governments. Bluesnap acts as a Merchant of Records.

ShopBase Payments by Stripe: merchants must calculate the tax laws for their products by each country and region. The process may include tax documents in local languages and record keeping within the governing body's required period.

C. Understand Merchant of Records

BlueSnap is a Merchant of Records, meaning that it will automatically calculate and collect the customers' sales taxes based on local regulations on your behalf. The sales taxes will be shown on the checkout page in addition to the order value. You can save yourself from legal paperwork and stay GDPR-compliant.
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