Learn why Paddle is charging sales tax on your invoice.
After carefully reviewing all transactions, discrepancies were identified in how and when sales tax was collected. The 2018 Supreme Court ruling “South Dakota vs. Wayfair Inc.” outlines that states may charge tax on purchases made from out-of-state sellers even if the seller does not have a physical presence in the taxing state. Details can be found here: https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
As part of our review, we have corrected those discrepancies and made the necessary adjustments to our processes going forward.
No. Paddle has taken the appropriate steps to ensure that sales tax is only applicable on future invoices. Therefore, you will not have to pay retroactive sales tax on any invoices issued before January 2023.
No. Paddle has taken the appropriate steps to ensure sales tax has been paid to the applicable state and local jurisdictions.
Please reach out to profitwell@paddle.com and we will work with you to determine the course of action.
Please reach out to profitwell@paddle.com and we will make the necessary edits.
If you have any further questions or you want to raise an issue with the calculations on an invoice, please reach out to profitwell@paddle.com, and we will do our best to respond and/or provide a resolution.
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