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

# Taxes & VAT Handling

> In PayFac mode, tax calculation, collection, and remittance are entirely your own responsibility.

This page covers tax handling in **PayFac mode**. If you're on **MoR mode**, see [Taxes & VAT Handling (MoR)](/v3-beta/docs/merchants/taxes-vat-mor) instead, tax is handled automatically for you there.

<Warning>
  In PayFac mode, Suby is not the Merchant of Record, you are the seller of record for every sale. Suby does not calculate, collect, apply, or remit any sales tax, VAT, or GST on your behalf. This is a significant difference from MoR mode, read this page carefully before going live.
</Warning>

## What Suby Does Not Do in PayFac Mode

<CardGroup cols={2}>
  <Card title="No automatic tax calculation" icon="calculator">
    Suby does not detect the applicable tax type or rate, or apply it at checkout.
  </Card>

  <Card title="No collection" icon="hand-holding-dollar">
    Suby does not collect any tax amount from your customers on your behalf.
  </Card>

  <Card title="No remittance" icon="paper-plane">
    Suby does not file or remit any sales tax, VAT, or GST to any authority for your sales.
  </Card>

  <Card title="No nexus tracking" icon="map">
    Suby does not track US economic nexus thresholds or any equivalent registration threshold elsewhere.
  </Card>
</CardGroup>

## What You're Responsible For

<Steps>
  <Step title="Register where required">
    You must register for VAT, GST, or sales tax in every jurisdiction where you become liable to, based on your own sales volumes and local thresholds (for example, economic nexus rules in the US, or VAT OSS registration in the EU).
  </Step>

  <Step title="Calculate the correct tax">
    For each sale, you determine the applicable tax type and rate based on your customer's location and your own tax registrations.
  </Step>

  <Step title="Collect it at checkout">
    You are responsible for including and collecting the correct tax amount as part of the price your customer pays.
  </Step>

  <Step title="File and remit">
    You file returns and remit collected tax to the relevant authorities, on your own schedule, in every jurisdiction where you're registered.
  </Step>
</Steps>

<Note>
  You remain responsible for declaring and paying your own income and corporate tax as well, in both PayFac and MoR mode. This page only covers sales tax, VAT, and GST on transactions.
</Note>

## What Suby Does Provide

Suby's dashboard shows you the gross amount, fees, and net proceeds per transaction, which you can export for your own accounting and tax filing. Suby does not calculate or itemize tax within these records, since it does not handle tax in this mode.

<Warning>
  If you're unsure whether you can handle global tax compliance yourself, MoR mode may be a better fit, it removes this responsibility entirely. [Contact the team](https://www.suby.fi/support) to discuss switching.
</Warning>

## FAQ

<AccordionGroup>
  <Accordion title="Do my customers see tax at checkout?">
    That depends entirely on how you configure your own checkout and pricing. Suby does not calculate, display, or itemize tax for you in PayFac mode, you need to build this into your pricing yourself.
  </Accordion>

  <Accordion title="Does Suby track US sales tax nexus for me?">
    No. Nexus tracking, registration, and remittance are entirely your responsibility in PayFac mode. See [What is a Merchant of Record?](/v3-beta/docs/merchants/what-is-a-merchant-of-record) if you'd prefer this handled for you.
  </Accordion>

  <Accordion title="Can I get help figuring out my tax obligations?">
    Suby does not provide tax advice. We recommend consulting a qualified tax advisor familiar with the jurisdictions you sell into. See the Education section for general guidance.
  </Accordion>

  <Accordion title="Can I be moved to MoR mode instead?">
    Mode assignment is handled by Suby based on your business profile, not self-selected. If you think MoR would be a better fit for you, [contact the team](https://www.suby.fi/support) to discuss it.
  </Accordion>
</AccordionGroup>