Paddle acts as Merchant of Record for digital products.
2026-05-24
tax/MoR
high
“Paddle operates as the Merchant of Record for your digital products.”
Official help-center statement.
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P
high confidence
Public sources only
Verified 2026-05-24
Paddle
Paddle is one of the most established MoR options for software companies. It positions itself explicitly as a reseller of software, AI tools and digital goods, taking responsibility for sales tax and VAT collection across 200+ markets. Its acceptable-use policy is restrictive on services and human-delivered offers, so it is rarely the right fit for coaching, consulting or marketplaces.
True Merchant of Record MoR / reseller
Paddle handles tax calculation, collection, and remittance.
2026-05-24
tax/MoR
high
“Calculate and charge the correct amount of sales tax”
Help page also says Paddle remits taxes globally.
Paddle supports SaaS, software, apps, and digital products.
2026-05-24
eligibility
high
“B2C and B2B SaaS businesses, and mobile app and digital product companies”
Official product positioning.
Paddle supports one-time digital products including courses and downloads.
2026-05-24
eligibility
high
“software licenses, ebooks, courses, plugins, digital assets”
Docs describe one-off purchases.
Standard public pricing is 5% + 50 cents per Checkout transaction.
2026-05-24
pricing
high
“5% + 50c per Checkout transaction”
Custom pricing applies for large businesses and some low-value/invoicing cases.
Caveats
- • Confirm whether marketplaces, coaching, consulting, and hybrid human-service offers are accepted.
- • Confirm any restricted-product or approval rules for AI products and course formats.
- • Confirm final pricing for invoicing, sub-$10 products, and higher-volume accounts.
Accepted or likely accepted
- SaaS Accepted
- Downloadable software Accepted
- AI tools Accepted
- Mobile apps Likely accepted
- Digital downloads Likely accepted
- Ebooks Likely accepted
- Templates Likely accepted
Risky, refused or unclear
- 1:1 coaching Likely refused
- Group coaching Likely refused
- Consulting Refused
- Marketplaces Refused
- Physical goods Refused
Unclear
- Online courses Unclear
- Communities Unclear
Tax coverage
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Yes
- Australia GST
- Yes
Acts as the seller of record; files and remits in supported markets.
Product features
- Hosted checkout
- Yes
- API
- Yes
- Subscriptions
- Yes
- One-time payments
- Yes
- Installments
- No
- Usage-based billing
- Yes
- Refund handling
- Yes
- Chargebacks
- Yes
- Affiliate system
- Yes
Geography and payouts
- Seller countries
- Most countries accepted; sanctioned regions excluded.
- Customer countries
- Sells globally; tax handled in 200+ markets.
- Payout countries
- Payouts in most countries with supported banking rails.
- Payout currencies
- Multi-currency; USD/EUR/GBP common.
Source links
- Paddle home docs
- Acceptable use prohibited_products
- Pricing pricing
Information missing?
Some provider details may be incomplete, unclear or not publicly documented yet. If you work at Paddle, use the email below to send us official sources for pricing, VAT coverage, accepted products, payout countries, invoices or Merchant of Record responsibility.
We prioritize official documentation links and written provider confirmations. Sponsorship never changes editorial ratings.
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