# Tax for AI

Set up Stripe Tax for your AI business.

If your business provides AI services, this guide helps you implement Stripe Tax for your specific use case. The tax treatment of AI services varies by jurisdiction, delivery model (cloud-based versus downloadable), and customer type (personal versus business use). Make sure that you correctly classify your products to stay in compliance with local regulations and tax laws.

## Availability

Stripe Tax supports the sale of AI services in any of the [supported countries](https://docs.stripe.com/tax/supported-countries.md#supported-countries).

## Product tax codes for AI services

Stripe Tax provides dedicated product tax codes (PTCs) for AI services:

| PTC             | Name                                                                                   | Use when                                                                                                                                   |
| --------------- | -------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ |
| `txcd_10105001` | Artificial Intelligence as a Service (AIaaS) - Cloud Based - Personal Use              | Your AI service is delivered entirely via the cloud to individual consumers                                                                |
| `txcd_10105002` | Artificial Intelligence as a Service (AIaaS) - Cloud Based - Business Use              | Your AI service is delivered entirely via the cloud to business customers                                                                  |
| `txcd_10105003` | Artificial Intelligence as a Service (AIaaS) - Cloud Based & Downloaded - Personal Use | Your AI service combines cloud delivery with a downloadable component (for example, a local model or desktop app) for individual consumers |
| `txcd_10105004` | Artificial Intelligence as a Service (AIaaS) - Cloud Based & Downloaded - Business Use | Your AI service combines cloud delivery with a downloadable component for business customers                                               |

AI companies also commonly use these adjacent PTCs:

- **Platform as a Service (PaaS) - Business Use** (`txcd_10102000`): For AI platforms where customers build or deploy their own models.
- **Software as a Service (SaaS) - Personal Use** (`txcd_10103000`): For AI-powered software applications sold to consumers.
- **Software as a Service (SaaS) - Business Use** (`txcd_10103001`): For AI-powered software applications sold to businesses.

Select the PTC that most closely matches how you deliver your product and who your customer is.

## Set up Stripe Tax for AI services

1. Follow [Set up your Stripe Tax account](https://docs.stripe.com/tax/set-up.md), including [registrations](https://docs.stripe.com/tax/registering.md) and [automated filing](https://docs.stripe.com/tax/file-with-taxually.md).
1. Use [threshold monitoring](https://docs.stripe.com/tax/monitoring.md) to track where you need to register based on your sales volume.
1. [Assign PTCs](https://docs.stripe.com/tax/products-prices-tax-codes-tax-behavior.md) to your products using the tax codes that most closely match your product.

## Regional considerations

### United States

US tax rules for digital services, including AI, vary by state. Some states tax all digital services, others exempt them, and many distinguish between personal and business use.

We recommend selecting the PTC that best matches your product’s delivery model and customer type. Don’t use **General - Electronically Supplied Services** (`txcd_10000000`) for US sales. This generic code doesn’t capture the distinctions that determine taxability in many states, and might result in incorrect tax calculations.

For US sales, some business customers might provide tax exemption certificates. Manage exemption certificates with the [EXEMPTAX Stripe App](https://support.stripe.com/questions/tax-exemption-certificate-management).

### European Union

EU VAT applies to AI services based on where your customer is located. Add the registration type that matches your situation:

- [Domestic registration](https://docs.stripe.com/tax/supported-countries/european-union.md#eu-businesses-domestic-registration): For sales within the EU country where your business is established.
- [One Stop Shop (OSS)](https://docs.stripe.com/tax/supported-countries/european-union.md#outside-eu-businesses-union-oss): For cross-border sales to customers in other EU countries. If your business is in the EU, select your home country as the registration country. If your business is outside the EU, you can select any EU country.

## B2B sales and reverse charge

Cross-border sales of AI services to business customers (B2B) outside the US often qualify for the reverse charge mechanism. To apply a [reverse charge](https://docs.stripe.com/tax/zero-tax.md#reverse-charges), you must collect your customer’s tax ID.

Learn how to collect Tax IDs in [Checkout](https://docs.stripe.com/tax/checkout/tax-ids.md) and display them on [invoices](https://docs.stripe.com/tax/invoicing/tax-ids.md).

## Customization

If your AI service has unique taxability requirements, you can use [tax customizations](https://docs.stripe.com/tax/tax-customizations.md) to apply special taxability rules or exemptions that override default behavior.