## Calculate tax

The most common forms of indirect taxes for your business are sales tax, VAT, and GST. These taxes apply on the sale of physical goods, digital goods, and services.

Stripe calculates tax on a transaction taking into account some or all of the following factors:

*   The location of the seller
*   The location of the customer
*   The location where the activity is performed
*   The type of the product sold
*   Whether the transaction involves a reverse charge
*   The status of the customer (for example, whether they’re a VAT-registered business, private person or an exempt organization)

Stripe calculates tax for all supported payment methods, including Apple Pay and Google Pay wallet transactions.

### How Stripe uses addresses

Stripe uses a single address as the customer’s location, or transaction destination, when calculating taxes. For more information, see [which customer address we use](/tax/customer-addresses).

In certain scenarios, it’s important to identify the origin of a transaction. Stripe generally uses the address where your business is located as the origin of a transaction. This address is defined as your head office address in the Dashboard or as `head_office` if using the tax settings object.

You can also specify a performance location to calculate tax based on a location that differs