> ## Documentation Index
> Fetch the complete documentation index at: https://docs.agentaos.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# How tax works

> How AgentaOS calculates, collects, and remits VAT as your merchant of record.

Tax on a sale is normally owed based on where your buyer is, not where you are. As your merchant of record, AgentaOS calculates that tax at checkout, collects it as part of the payment, and remits it to the right authority. You don't register, file, or send a payment to a tax office yourself.

<Note>
  This page explains how tax works on sales made through AgentaOS. It isn't advice on your own company's corporate or income tax: talk to your accountant for that.
</Note>

## Destination tax, in short

VAT in the EU is charged based on the buyer's location and what's being sold, not the seller's. Once a seller passes the EU threshold, a sale to a consumer in Germany follows German VAT rules, even if the seller has never set foot there. This is why cross-border software sales create a tax obligation in every country you have customers, not just your own.

## The rate on EU sales today

AgentaOS is VAT-registered in Estonia and sells under the EU distance-selling threshold of €10,000. Under that threshold, the checkout charges every EU consumer the Estonian VAT rate of 24%, whichever EU country they buy from. A German consumer therefore pays 24% on the checkout, not the German rate.

* **EU consumer**: the Estonian rate, 24%.
* **EU business in another EU country, with a valid VAT number**: no VAT (reverse charge). The buyer accounts for the VAT.
* **Buyer outside the EU**: no VAT.

Once AgentaOS's EU sales pass the €10,000 threshold, the buyer's country rate applies.

## How AgentaOS handles it

<Steps>
  <Step title="Tax is calculated at checkout">
    Based on the buyer's location and what's being sold, before the payment is confirmed.
  </Step>

  <Step title="Tax is collected with the payment">
    Your buyer pays one total price, tax included, in a single transaction.
  </Step>

  <Step title="AgentaOS remits it">
    AgentaOS files the returns and remits what is owed where it is registered. You never file anything yourself.
  </Step>

  <Step title="Your invoice shows the breakdown">
    Every payment gets a tax-correct invoice with AgentaOS's Estonian entity as the seller, and the VAT on its own line with the rate applied, for example "VAT 24% of €29.00". On a reverse-charge sale, the invoice says "Reverse charge applies per Article 196 of EU VAT Directive 2006/112/EC." See [Invoices](/payments/invoices).
  </Step>
</Steps>

## Where AgentaOS is registered today

<Columns cols={1}>
  <Card title="European Union" icon="earth-europe">
    VAT-registered in Estonia. AgentaOS's Estonian entity is the registered seller. See [The rate on EU sales today](#the-rate-on-eu-sales-today).
  </Card>
</Columns>

<Note>
  AgentaOS charges VAT only in the EU today, from its registration in Estonia. Buyers outside the EU are charged no tax.
</Note>

## Selling to businesses (B2B)

A business buyer can enter its VAT number at checkout. AgentaOS checks an EU number against the EU VAT register. A business in another EU country with a valid VAT number pays no VAT: the invoice shows the reverse charge, and the buyer accounts for the VAT itself. A business in Estonia pays the Estonian rate. A buyer outside the EU pays no VAT, with or without a tax number.

## FAQ

<AccordionGroup>
  <Accordion title="Do I need to register for VAT myself?">
    No. AgentaOS is the merchant of record, so AgentaOS registers, collects, and remits VAT on the sales you make through AgentaOS.
  </Accordion>

  <Accordion title="What tax rate will my buyer be charged?">
    Today an EU consumer pays the Estonian rate of 24%, and a buyer outside the EU pays no VAT. See [The rate on EU sales today](#the-rate-on-eu-sales-today).
  </Accordion>

  <Accordion title="What if my buyer is a business, not a consumer?">
    A business in another EU country with a valid VAT number pays no VAT: the invoice shows the reverse charge, and the business accounts for the VAT itself. A business in Estonia pays the Estonian rate. A business outside the EU pays no VAT.
  </Accordion>

  <Accordion title="Whose name is on the tax invoice?">
    AgentaOS's Estonian entity, your merchant of record, appears as the seller. See [Invoices](/payments/invoices).
  </Accordion>

  <Accordion title="Does this cover my own company's taxes?">
    No. This covers tax on the sales made through AgentaOS. Your own company's income tax and bookkeeping are still yours to handle.
  </Accordion>
</AccordionGroup>

## Next steps

<Columns cols={3}>
  <Card title="Getting started" icon="rocket" href="/introduction">
    The AgentaOS overview, if you're just getting started.
  </Card>

  <Card title="How it works" icon="handshake" href="/mor/how-it-works">
    What a merchant of record is and what it does for you.
  </Card>

  <Card title="Supported countries" icon="earth-europe" href="/mor/supported-countries">
    Where you can sell and where you can get paid.
  </Card>

  <Card title="Pricing" icon="credit-card" href="/mor/pricing">
    How the per-transaction fee works.
  </Card>

  <Card title="Invoices" icon="file-invoice" href="/payments/invoices">
    What a tax-correct invoice looks like, and how to export one.
  </Card>

  <Card title="Payouts" icon="money-bill-transfer" href="/payouts/overview">
    Move your balance to your bank or wallet.
  </Card>
</Columns>


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