Lemon Squeezy is a 'Merchant of Record' (MoR). This means when you sell software or digital goods, they technically resell it for you. Why does this matter? Because they handle global sales tax (VAT) compliance automatically.
For SaaS developers and creators selling globally, this is a massive headache solver. It combines payments, subscriptions, global tax compliance, and license key management into one platform. It is the modern alternative to Gumroad and Paddle.
Key Highlights:
- Tax Compliance: Handles EU VAT and US Sales Tax automatically.
- SaaS Features: Subscription management and license keys built-in.
- No Monthly Fee: They take a cut of sales (Merchant of Record model).
Verdict: Essential for selling software or subscriptions globally without tax headaches.
Frequently Asked Questions
How is it different from Stripe?
Stripe processes payments. Lemon Squeezy processes payments AND handles the legal/tax liability of selling to different countries.




