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All SaaS Sales Taxes Calculated, Filed & Remitted For You โœ…

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Selling software with Paddle? You never have to deal with sales taxes like VAT and GST in any jurisdiction ever again.

Paddle is an All-in-One SaaS Commerce Platform - much more than a tax calculator. We act as the Merchant of Record (a reseller, just like the App Store). This means we calculate, file, remit your software sales taxes on your behalf, so you're free to run and grow your business.

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Automatically charge the correct rate of sales tax

Sales taxes based on where your buyers are (not where you are). The sales tax rates are different across products and tax jurisdictions - from country & state down to county and city level (more than 15,000 across the US alone)

VAT and GST rates and exemptions differ between jurisdictions for consumers and businesses too - see the full list here.

Paddle is more than a tax calculator. We ensure tax compliance across your payments, subscriptions (including proration), invoices, and receipts.

Save on sales tax software and filing fees

Tax calculators may appear cheap but are limited to calculating, charging, and producing a report. They also need to be integrated across all your payment methods globally.

Tax intermediaries charge significant fees - often $100s per filing per jurisdiction per year - just to file taxes.

Paddle pays tens of thousands of dollars in filing taxes on behalf of thousands of software sellers. Get the benefits for your software business at no extra cost.

Why does Paddle do this for me? โ†’

All your sales tax is remitted for you

You need to file and pay your taxes owed in each jurisdiction it with all the associated costs. These fees vary (ask your tax accountant). In some jurisdictions (like Japan), it is mandatory to appoint a local tax agent to file your taxes on your behalf (who cost money and often work in local languages).

Paddle files and pays your sales taxes owed on your behalf, then issues a 'reverse invoice' to for your records to show taxes as paid. You donโ€™t need to do or pay anything extra.

You are indemnified from all your sales tax with Paddle

Since Paddle is the Merchant of Record, 1000+ software businesses running on Paddle never have to deal with SaaS sales tax. Your business in indemnified from all your sales tax liabilities.

If a jurisdiction investigates you or changes their tax law overnight, we (Hugo, our CFO) take liability, not you.

Better still, the customer never sees the difference beyond one line explaining the reseller relationship. You still have full control of price, checkout, and your user experience.

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