Paddle entirely handles VAT (sales tax) for all digital products sold to countries where this is a legal requirement, eg. EU member states, India, Australia, and more.

In countries in which Reverse charge is applicable, VAT-registered businesses who purchase products through Paddle will not pay VAT if the transaction is cross-border (they do this by entering their VAT ID at the time of purchase).

Paddle acts as a re-seller of your product, meaning that we can collect the relevant information about your customer, charge them the correct amount of tax, and return it to the relevant authority. No additional work is required on your part.

Learn more about Tax and Compliance here. Don’t hesitate to get in touch if you have any questions.