Paddle - interesting alternative to 2checkout

[dotbloup]

Paddle.com is a payment gateway like 2checkout because it accepts visa, mastercard & Paypal.

But there is an interesting difference compared to 2checkout. Paddle manages the VAT or the sales tax for you.

I can read on their website:
Sitting as a layer between you and your customers as a 'reseller', we completely manage VAT headaches on your behalf.

So, it means that rather than creating 100 invoices for 100 customers, your company will only need to match one paddle payout (without vat) with one invoice.

Why is it important? It is important for people who own an online business in Cyprus. If they have outsourced the accounting in Cyprus, they are billed according to the number of invoices. The smallest the number of invoices they pay and the least your company will pay for accounting.

Same thing with the mandatory tax audit for Cyprus companies. It is billed depending on the number of invoices. Thanks to Paddle you can tremendously reduce the number of invoices and pay less to your accountant in Cyprus!!!!!

Paddle: Features
How does Paddle handle VAT on my behalf? ”” Paddle Help & Support

 

[dotbloup]

On the other hand with 2checkout, according to the EU directive, if you are in Europe, you should create one invoice per customer and remit yourself the VAT.

 

[dotbloup]

If i am right, it would mean paddle.com allows people not to collect & report vat moss too for their EU customers because paddle just like google play does it for the company

 

[negon]

dotbloup said:
But there is an interesting difference compared to 2checkout. Paddle manages the VAT or the sales tax for you.
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Great to see an alternative to 2co but is the above good? What if we don't want to charge VAT?

 

[dotbloup]

auric said:
Great to see an alternative to 2co but is the above good? What if we don't want to charge VAT?
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That's a good question because before reaching the threshold of a EU country, you don't need to bill and remit vat.

 

[dotbloup]

Nevertheless, i appreciated they said they act as resellers of your digital goods. So, rather than being forced to track hundreds of customers with their name, address, country as it is now required in the EU, you create an invoice with paddle on it and one description saying something like: Software reseller agreement, digital goods reseller agreement

Taking into account that in Cyprus the tax audit costs at least 1000 euros for 20 documents per month, that's interesting to reduce the number of documents to the maximum.

 

[negon]

So they are a 3rd party processor similar to CCBILL where you don't have you own descriptor on each transaction made by a credit card?

dotbloup said:
Taking into account that in Cyprus the tax audit costs at least 1000 euros for 20 documents per month, that's interesting to reduce the number of documents to the maximum.
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Agree, makes it a lot esier and cheaper.

 

[Thirsty Beaver]

I didn't hear about paddle.com before. I'm going to try it for a while.........

 

[Thirsty Beaver]

It seems that Paddle.com specializes in software selling. Moreover, it is a re-seller of your products, not a payment gateway.

 

[lostman]

Are they good and better compared to 2checkout please?

 

[utibi]

Thirsty Beaver said:
It seems that Paddle.com specializes in software selling. Moreover, it is a re-seller of your products, not a payment gateway.
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Software only can't use them like paypal or 2co 🙁

 

[anotherone]

I don't recommend paddle.com, they write to you and they ask you to justify the revenue of your business while it is running.

 

[aage]

anotherone said:
I don't recommend paddle.com, they write to you and they ask you to justify the revenue of your business while it is running.
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like Mr. Tango does and other EMI?

 

[anotherone]

aage said:
like Mr. Tango does and other EMI?
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Yep, this is exactly what I am talking about. Those annoying intrusive emails requiring you to detail your business.

 

[aage]

I see, that sucks.. and how much money do you have in there?