Best Merchant of Record Platforms 1970
Merchant of Record (MoR) platforms handle global tax compliance on your behalf — VAT, GST, and sales tax across 100+ countries.
Last updated: January 1970
What is a Merchant of Record?
A MoR is the legal seller of your product. They collect payment, charge VAT/sales tax, file returns, and remit to tax authorities. You receive a single net payout. The fee (4–8%) replaces the cost of registering and filing in every jurisdiction yourself.
| # | Tool | Fee | Tax coverage | Ease score | |
|---|---|---|---|---|---|
| 1 | Paddle Complete payments infrastructure for SaaS | 5% + $0.50 per transaction | 5/5 | 3/5 | View → |
| 2 | Lemon Squeezy Payments, subscriptions and MoR for indie SaaS | 5% + $0.50 per transaction. Acquired by Stripe 2024. | 5/5 | 5/5 | View → |
| 3 | Polar Open-source monetization for developers | 4% + $0.40 per transaction (lowest MoR fees on the market) | 5/5 | 5/5 | View → |
| 4 | FastSpring Global payments and MoR for software companies | 5.9% + $0.95 per transaction (or custom rate) | 5/5 | 3/5 | View → |
| 5 | Gumroad Sell anything digital, instantly | 10% flat. 30% if sold via Gumroad marketplace. | 4/5 | 5/5 | View → |
Who needs a MoR?
- • Selling to EU customers (VAT required from first sale)
- • Selling to multiple countries
- • Teams without a tax/finance person
- • Indie devs who want zero compliance overhead
FAQ
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal seller of your product. The MoR collects payment, charges sales tax/VAT, files returns, and remits to tax authorities — so you don't have to register in every jurisdiction you sell to.
Do I need a MoR?
If you sell to EU customers you legally need VAT compliance from your first sale. A MoR handles that automatically. If you sell only to US customers under each state's nexus threshold, you can run Stripe directly and add tax tooling later.
MoR vs Stripe Billing?
Stripe is a payment processor — you remain the seller and own tax compliance. A MoR (Paddle, Lemon Squeezy, Polar) is the seller of record and takes a higher fee (4–8%) in exchange for handling global tax. Pick MoR for global reach without a finance team; pick Stripe for lower fees if you can absorb the compliance work.
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