What Paddle is
A billing platform that takes on the merchant of record role. Instead of you registering for tax in every market, Paddle sells to the customer and handles sales tax, VAT and GST on your behalf.
Payments, subscription management and compliance sit in one place.
What you can do with it
- Run subscription and one-time billing
- Sell into multiple countries and currencies
- Show localised checkout
- Have sales tax, VAT and GST calculated and remitted
- Manage refunds and chargebacks
- Handle renewals centrally
Who it is for
- SaaS startups and scaleups
- Digital product sellers
- Overseas app teams
- Finance leads managing revenue systems
What to watch out for
- Merchant of record means Paddle is the seller of record, which changes who owns the customer relationship and some liabilities
- Fees are higher than a raw payment gateway, since tax and compliance work is bundled in
- You still own your own corporate tax obligations on the revenue you receive
- Check supported markets and payout terms before switching providers
Pros & cons
✓ What we like
- Removes cross-border tax admin
- Subscription and checkout handled
- Refunds and chargebacks managed
- Good fit for global SaaS
! What to watch out for
- Fees reflect the bundled compliance work
- Merchant of record changes the selling relationship
FAQ
What does it handle?
Payments, subscription billing, invoicing and cross-border sales tax, VAT and GST.
Who is it for?
SaaS and digital product teams selling to customers in several markets.
Does it remove all tax duties?
No. It handles transaction taxes as merchant of record, but your own corporate tax obligations remain.
Last reviewed: 2026-09-15
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