MoR
The legal entity responsible for processing payments, collecting and remitting sales tax / VAT, and handling refunds and chargebacks for a sale.
The Merchant of Record (MoR) is the entity legally responsible to the customer for the sale. MoR services like Paddle, FastSpring, Lemon Squeezy, and Stripe Tax act as the seller of record, handling global sales-tax / VAT registration, payment processing, fraud, and chargebacks — the underlying business simply receives a net payout. Using an MoR is a common solution for non-resident SaaS founders who want to avoid registering for VAT in dozens of jurisdictions.
Also known asMerchant of Record, Seller of Record
Related terms
- Marketplace Facilitator — A state law category requiring online marketplaces (Amazon, Etsy, eBay, Walmart) to collect and remit sales ta…
- Form 1099-K — The IRS information return that payment processors and marketplaces issue when annual gross receipts cross a r…
- FDAP — U.S.-source passive income paid to non-residents, generally subject to 30% gross withholding (often reduced by…