I am looking for a "Merchant of Record" (MoR) that handles global sales tax remittance for SaaS companies.

If your main requirement is “the provider becomes the legal seller and handles global indirect-tax collection and remittance”, there are several established MoR options for SaaS.

Paddle explicitly describes itself as MoR for SaaS and says it takes responsibility for global sales-tax compliance. MoR Paddle FastSpring likewise states that it calculates, collects and remits VAT, GST and sales taxes and acts as the legal seller. FastSpring FastSpring Developer Docs Lemon Squeezy says it handles global sales-tax remittances as the MoR. LemonSqueezy Dodo says it calculates, collects and remits taxes across 190+ jurisdictions.Dodo Payments

What I'd investigate before choosing

The important distinction isn't simply “does it calculate tax?” A genuine MoR should take on the relevant legal seller/liability and remittance obligations, rather than merely providing a tax calculator.

I'd compare these areas:

• B2B vs. B2C: especially whether you sell to businesses in the EU and need VAT-number validation/reverse-charge handling.
• US sales tax: nexus handling, state/local rates, registrations and filing/remittance.
• Global VAT/GST: EU/UK, Canada, Australia/NZ, India, Japan, etc.
• Who is legally liable: get the contractual scope of the MoR liability in writing.
• Invoices and tax documentation: particularly whether the MoR issues the legally appropriate customer invoice.
• Subscription migrations: whether existing Stripe/Paddle/etc. subscriptions and payment tokens can be migrated.
• Pricing: MoRs generally charge more than a pure payment processor because you're outsourcing tax/compliance and transaction liability.
• Customer relationship/data: determine what customer, transaction and subscription data you retain and what happens if you leave.
• Revenue recognition/accounting: the MoR structure can affect how gross vs. net revenue and taxes are represented in your books.

One especially important caveat: Stripe should not automatically be treated as equivalent to Paddle/FastSpring simply because Stripe offers tax and billing products. Stripe's own 2026 MoR guide explains that an MoR is the legal seller responsible for the transaction, and the exact product/model matters.Stripe

If you tell me (1) your approximate annual SaaS revenue, (2) B2B vs. B2C, (3) where your company is incorporated, and (4) your current payment stack (e.g. Stripe), I can narrow this down to the most relevant 2–3 options and compare their fees, tax coverage, payout mechanics, and integration/migration tradeoffs.

I'd compare these areas:

If you are a SaaS company looking for a Merchant of Record (MoR) that will take responsibility for global sales tax/VAT/GST calculation, collection, filing, and remittance, these are the main providers to evaluate:

How I would choose

For a B2B SaaS company doing serious international sales

Start with:

• Paddle — especially if you need subscription management, SaaS analytics, invoicing, and a vendor experienced with software businesses.Paddle+1
• FastSpring — especially if you want a more full-service commerce platform with enterprise-style support and global payment localization.FastSpring+1

For an early-stage SaaS or developer-led product

Consider:

• Lemon Squeezy — good when you want to avoid building billing and tax infrastructure and prioritize speed to market.LemonSqueezy+1

Important MoR questions to ask before signing

1. Which jurisdictions do you actually cover?

• EU VAT
• UK VAT
• US state sales tax
• Canada GST/HST
• Australia GST
• India GST
• Digital services taxes

2. Do you handle B2B reverse charge?

• Can you validate VAT IDs?
• Do invoices show the correct tax treatment?

3. Who is legally responsible?

• Confirm the provider is truly the seller of record, not just calculating tax.

4. What happens to customer ownership?

• Can you export customer, subscription, and payment history?

5. How do they handle SaaS edge cases?

• Usage-based billing
• Free trials converting to paid
• Upgrades/downgrades
• Refunds and credits
• Enterprise contracts

Other options worth comparing

Depending on your architecture, you may also want to compare MoR alternatives such as Stripe Managed Payments, Recurly, or tax-only approaches like Avalara + your own billing stack. These differ because some handle tax compliance without becoming the legal seller of record.

If you share your ARR range, B2B vs B2C mix, countries you sell into, and whether you use Stripe today, I can narrow this to the best 2–3 options.

Yes. If your main requirement is “the provider becomes the Merchant of Record and actually collects, files, and remits global sales tax/VAT/GST for my SaaS”, there are several strong options.

My shortlist

1. Paddle — probably where I'd start

paddle.com

Paddle explicitly positions itself as an MoR for SaaS and says it takes responsibility for international sales-tax compliance across 100+ jurisdictions. That includes the registration, collection, filing, and remittance burden that you're trying to get off your plate.Paddle

It's particularly attractive if you have:

• Recurring SaaS subscriptions
• Customers in many countries
• Usage/proration/dunning requirements
• A growing finance/compliance burden
• Enough revenue that a robust billing platform matters

2. Lemon Squeezy — excellent for smaller SaaS

lemonsqueezy.com

Lemon Squeezy explicitly operates as the MoR: the customer transaction is with Lemon Squeezy, and it handles global sales-tax remittances and post-sale compliance.LemonSqueezy

I'd favor it when simplicity and developer experience matter more than sophisticated enterprise billing.

One important consideration: Lemon Squeezy is owned by Stripe, following Stripe's 2024 acquisition.stilllater

3. FastSpring — strong alternative

fastspring.com

FastSpring is specifically geared toward digital products/software and says its MoR model handles VAT, GST, sales tax and digital-services taxes across 240+ jurisdictions.FastSpring

This is one I'd put on an RFP/shortlist alongside Paddle if you're a serious SaaS business rather than a tiny indie project.

4. Digital River — enterprise-oriented option

digitalriver.com

Digital River's MoR model covers 240+ markets and explicitly includes calculating, collecting, filing and remitting taxes.Digital River Docs

I'd investigate it particularly if you're dealing with large transaction volumes, international entities, complicated payment requirements, or enterprise commerce.

One important distinction

Don't confuse an MoR with a tax-calculation service.

For example, with a conventional payment processor, you may get:

Calculate tax → collect tax → give me reports But you remain legally responsible for filing and remitting it.

With an actual MoR, the desired model is:

Customer → MoR legally sells the SaaS → MoR collects tax → MoR files/remits tax → you receive your payout That's the key reason companies accept the higher transaction fee. Stripe itself describes this distinction in its current SaaS MoR guide.Stripe

My recommendation

If you tell me your approximate annual revenue/GMV, average subscription price, B2B vs. B2C mix, countries you sell to, and whether you need usage-based billing, I can narrow this to the best 2–3 MoRs and compare their fees, tax coverage, payout terms, billing capabilities, and integration effort.

Yes. For a SaaS company, you want a true Merchant of Record (MoR) rather than merely a tax-calculation service. The key distinction is that the MoR becomes the legal seller for the transaction and takes responsibility for collecting, filing, and remitting applicable sales tax/VAT/GST.

Here are the strongest options I’d shortlist:

My recommendation

I'd start with Paddle and FastSpring if this is a serious SaaS operation and tax compliance is the primary reason you're looking for an MoR.

• Paddle — particularly attractive if you're a SaaS/PLG company and want a modern billing + payments + tax stack. Paddle says it handles registration, calculation, collection, filing and remittance globally.Paddle
• FastSpring — particularly attractive if you need mature B2B functionality, sales-assisted transactions, invoices/quotes, subscriptions, and extensive payment localization. It explicitly assumes responsibility for tax registration, filing and remittance.FastSpring+1
• Lemon Squeezy — I'd consider this first if you're a smaller developer-focused SaaS and want the simplest setup. Its MoR model means it collects and remits sales tax/VAT rather than you doing it yourself.Lemon Squeezy Docs
• 2Checkout/Verifone — worth evaluating if you have unusual geographic requirements or want the ability to mix MoR and PSP models by market.

One important caveat: an MoR taking responsibility for transaction taxes doesn't necessarily eliminate your company's own income-tax, corporate-tax, or other tax obligations. For example, Lemon Squeezy explicitly notes that your payouts can still have income-tax implications.Lemon Squeezy Docs

If you tell me your approximate ARR/transaction volume, B2B vs. B2C mix, countries you're selling into, and whether you already use Stripe, I can narrow this down to the best 2–3 MoRs and compare pricing, fees, Stripe migration, customer ownership, refunds, VAT/GST handling, and integration effort.