Selling SaaS Globally paddle.com 2 Merchant of record As a reseller, the MoR is the legal entity responsible for transactions and, as such, take responsibility for any sales tax liability on those transactions. What are the bene昀椀ts? As the liable party, the MoR is responsible for calculating, 昀椀ling, and remitting sales tax. That saves your business hours of manual work and removes risk. It also helps keep your books ‘clean’, which is valuable during the due diligence process that forms part of a fundraise or IPO. Things to consider In order to become the liable party, the MoR needs to appear on certain payment receipts or statements. However, this doesn’t usually impact conversion rate and due to optimized payment processes developed by the MoR, payment acceptance is likely to increase overall. 16