How Automated Sales Tax Compliance Works
Unlike traditional payment providers, FastSpring operates under a Merchant of Record model which means that FastSpring owns the “merchant account” used with the global payment processors where we dynamically route your customers’ transactions on our platform.
Your branding is still displayed on your customers’ credit card bills and invoices, but thanks to the MoR model, FastSpring is the one responsible for registering with global sales authorities, calculating sales taxes, paying sales taxes, filing quarterly returns, and dealing with sales tax audits. This benefit means you can sell worldwide now without all the complexities of global sales tax & VAT compliance.