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Provider

Paddle Merchant of record

A merchant of record built for software and SaaS: Paddle becomes the legal seller and handles global sales tax/VAT, billing, subscriptions and disputes — so you don't register for tax country by country.

Role: merchant of record · Tax: Paddle remits worldwide · Fee: ~5% + 50¢ for digital goods (confirm current pricing).

Because Paddle is the seller of record, foreign VAT/GST is collected at checkout and filed by Paddle. You receive a payout net of tax and fees, with nothing to file per transaction.

Pros & cons

Strengths

Removes global tax admin; strong subscription/billing tooling; unified invoicing; good fit for B2B SaaS selling internationally.

Watch‑outs

Higher fee than a direct processor; less control over the checkout and customer data; a first‑party affiliate program typically runs through third‑party networks (e.g. PartnerStack).

Best for

SaaS and software companies selling worldwide that want tax and compliance handled for a predictable cut.

Visit Paddle Compare with Stripe & Lemon Squeezy
Not tax advice. Confirm current pricing and terms with Paddle.