SaaS is global from day one. Anywhere there’s an internet connection, there’s a potential global customer base, who can find you whether you target them or not. This means more companies than ever are challenged with keeping operations compliant internationally.
Traditionally, this has been a complex (and expensive) task that requires a significant cross-functional effort from your finance, engineering, and legal teams.
Failure to manage compliance effectively could lead to audits, huge back tax bills and penalties. Not to mention the risk to company growth, losing customers, and even potential investment, if you can’t prove your processes are compliant and secure.
At Paddle, we take a different approach.
What is Paddle Comply?
Paddle Comply is a complementary feature of the Paddle Revenue Delivery Platform that powers global financial compliance for SaaS businesses – allowing businesses to operate with full integrity and compliance internationally, from the very first sale, at no additional cost.
Paddle Comply comprises in-house experts and advanced technology to help SaaS businesses scale globally more quickly, by taking responsibility for:
Global sales tax compliance – Sell internationally without any tax liability.
Payment compliance – Paddle's infrastructure and payment partnerships are fully compliant with Payment Card Industry Data Security Standard (PCI DSS).
Legally compliant Revenue Delivery - Built-in compliance in accordance with global data protection laws.
Global sales tax compliance
As a reseller, Paddle takes on all tax liability for the transactions to all end customers, absolving you from any non-compliance. Not only does this mean you don’t need to worry about calculating sales tax but it’s also our responsibility to register, file, and remit tax on every sale. Saving your team valuable time now and in the event of an audit.
“Instead of managing sales tax in-house, more than 2,000 start-up and scale-up software companies around the world use Paddle Comply to remove that headache.
"We’re a dedicated team, managing sales tax in 47 jurisdictions around the world, registering, filing and remitting taxes as well as constantly looking ahead to make sure we’re aware of any new regulations coming into force.” Tanya Freymundt, Head of Finance.
Thanks to the Paddle Data Core you keep control of your financial data, without the admin burden or liability. This is different from a payment service provider (PSP) which may process the payments but any tax obligations still lie with the seller.
"We looked at and integrated various solutions...but in the end, we saw that there’s a lot of complexity not on the technical side but in the compliance aspect. That’s when we discovered Paddle.
"We were really happy to see that being so much easier when it comes to compliance. Technically, there are quite a few good billing solutions out there but when it comes to compliance, the amount of providers is very limited.” Benjamin Groessing, Co-Founder and CEO, Kaleido .
Paddle's infrastructure and payment partnerships are fully compliant with Payment Card Industry Data Security Standard (PCI DSS). With Comply, these requirements are built into the checkout flow and add transaction and tax details onto payment receipts, invoices, and emails – so neither you or the end customer needs to worry about it.
Using our checkout means you don’t need to be PCI compliant, as Paddle Comply takes on this burden. Sometimes, new regulations like PSD2 require changes to the checkout and payment process. When this happens, Paddle Comply will make the necessary changes to keep payments compliant, so your engineering team doesn’t have to.
“Our Checkout and Payments teams are dedicated to providing a fully compliant and highly optimized buying experience. We ensure the checkout is compliant with all new regulations. These can be very large changes like PSD2 in 2019, or lesser-known changes such as the “Swedish Presentation of Payment Methods” Law and Visa’s Free Trial Mandate earlier this year.
"Leveraging our relationships with PSPs around the world, we are well-informed of upcoming compliance changes and work with them to ensure a great purchasing experience for buyers whilst remaining fully compliant.” Mike Wakeling, Head of Product.
Legally compliant Revenue Delivery
With Paddle Comply, customer data will be handled securely under GDPR and global data protection laws.
Our Legal team is also constantly looking ahead and making sure we’re prepared for any new regulations coming into force.