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5 reasons why SaaS businesses choose Paddle over TaxJar

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TaxJar caters for just one aspect of tax compliance: calculating sales tax rates on each of your transactions automatically. It doesn’t take on liability, and means businesses will still need to file and remit their own taxes. 

With Paddle, your tax is not only calculated, filed and remitted completely automatically, but we are also legally liable for all sales tax and related compliance.

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#1: No more sales tax liability 😇

With TaxJar, you are still legally liable, meaning any possible calculation errors could lead to some  hefty penalties for your business.

Paddle Comply indemnifies you - and the other 2000+ software businesses we work with - from sales tax liabilities. It's our responsibility to calculate, file, and remit the correct sales tax on everything sold through the platform (no matter how often the rules, regulations and jurisdictions may change). 

#2: Ensure you are registered everywhere 🌏

With TaxJar, you still need to register your business around the world. This means tracking your obligations per local filing thresholds, and completing the necessary paperwork - which is  likely to involve registering in each US state.

Paddle is registered in every jurisdiction where needed and updates sales tax rates on an ongoing basis. No more getting caught out by thresholds, rate changes, or new laws.

#3: Going way beyond just tax calculation 🚀

As a tax calculation tool, TaxJar is just one part of your overall revenue delivery infrastructure. You'll need to integrate supporting tools on top of it to handle subscriptions and recurring payments. 

Paddle does all of the above (and more) so you don’t have to. All aspects of your revenue delivery strategy and structure is handled by us, meaning you don’t have to worry about any painful integrations:

#4: Become tax compliant globally 🗺️

SaaS is borderless and global by nature. The fastest growing companies drive growth worldwide, going far beyond the limited range of countries that TaxJar currently supports.

Paddle supports tax calculations on a global scale. Acting as the reseller, Paddle ensures that you are fullly compliant, no matter where your transactions are. 

Find out more about which countries Paddle charge sales tax here →

#5: Simple and better pricing from the start ✨

TaxJar fees range from $19 to $99 per month for up to 200 orders. For those going beyond that volume, there’s hidden pricing which mounts up fast.  

You will need to integrate and pay for additional tools to handle other essential parts of the SaaS revenue delivery infrastructure too, including payment processing and subscription management.

Paddle offers all of the above (and more) within one, simple tool - and one tool means just one set of costs to manage and reconcile. 

TaxJar is only a tax calculator platform.

TaxJar is a tax calculator

TaxJar offers tax management capabilities for all kinds of products, including software, helping businesses to track, file and report tax.  TaxJar offers an AutoFile feature (only available in the US), which automatically prepares and submits tax returns to each US state.

Paddle is a Revenue Delivery Platform

All you need to sell software online in one singular platform - including tax compliance . Paddle manages all payment, subscription billing, sales tax compliance, fraud protection, revenue recovery, currencies, metrics, and more.