> ## Documentation Index
> Fetch the complete documentation index at: https://docs.m1amdocs.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Taxation

Tax calculation is done using the Avalara AvaTax engine, or through an integration with your own external taxation provider, to support VAT and sales tax. You also have the option to apply a flat VAT instead of integrating with an external tax solution.

When Resellers (Service Providers) use Commerce Engine's Ava Tax, Commerce Engine can automatically calculate and apply the appropriate sales tax to transactions. You get the tax compliance power you need to offer products across the globe without the burden of having to calculate applicable taxes yourself.

**Parent topic:**[Charging and Billing](chargingBilling)


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