Handle tax collection and VAT receipt capture for agent purchases

Steps

1. Determine your tax role before the agent buys anything: if your platform is the merchant of record (MoR) for the transaction, you are responsible for calculating, collecting, and remitting tax; if the agent is buying from a third-party merchant, that merchant is the MoR and you are a buyer — your obligation shifts to receipt collection and expense reporting.
2. For MoR flows: integrate a tax calculation API (Stripe Tax, Avalara, TaxJar, or equivalent) to determine the correct tax amount at checkout time based on buyer address, product tax code, and nexus rules; never hardcode tax rates.
3. For buyer flows: configure the agent to request a VAT/GST receipt or tax invoice at checkout wherever the merchant provides one (this is often a checkbox in the billing address form or a post-purchase email opt-in); capture this receipt and store it linked to the purchase record.
4. Store receipts in a structured format alongside the transaction record: merchant name, transaction date, amount, tax amount, tax jurisdiction, and receipt document (PDF or URL); this is required for business expense claims and VAT reclaim.
5. For cross-border purchases: track the origin and destination jurisdiction for each transaction; VAT reclaim eligibility and tax treatment differ by jurisdiction and purchase category.
6. Run a monthly reconciliation pass to identify purchases missing a receipt or tax invoice; flag these for manual follow-up before the accounting close.