Paddle

Merchant of record for software companies — billing, sales tax, and compliance handled.

Overview

Paddle is a merchant of record for software companies, meaning Paddle is the legal seller and is responsible for global sales tax and VAT registration, collection, and remittance.

It covers checkout, subscription billing with proration and trials, dunning, and B2B invoicing and reseller orders. Because Paddle is the seller of record, the end-customer payment relationship sits with Paddle rather than with the software vendor.

Common use cases

Sell software internationally without registering for VAT
Run subscription billing with trials and proration
Recover failed payments through automated dunning
Issue B2B invoices and handle reseller orders

Key features

Merchant of record — Paddle is the seller of record
Global sales tax and VAT registration and remittance
Subscription billing with proration and trials
Checkout with localised pricing and payment methods
Dunning and involuntary-churn recovery
Reseller and invoicing support for B2B SaaS

Sources and evidence

FintechToolkit records the source behind core directory claims. This profile’s sources were last captured on 1 August 2026. Validate time-sensitive commercial, regulatory, and availability details directly with the provider.

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