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How Paddle is able to take on your VAT and tax responsibilities

One of the key benefits of selling through Paddle is that we take the entire burden of managing VAT and sales tax away from you. We can do this because we act as a Merchant of Record (MoR).

This means, from a legal point of view, that Paddle acts as a reseller of your product, and is therefore the “seller on record”. This way, Paddle will be responsible for collection and payment of VAT and tax instead of you.

We’ve written more on this topic here. Don’t hesitate to get in touch if you have any questions.

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