Do you invoice your customers directly, or do you use something like Paddle?

Zoltán Szőgyényi
3 replies
Hey everyone, In my country at least, it is quite a headache to calculate the local taxes for every country where we sell a product. So a simple solution would be something like Paddle, where they invoice the client instead of you, they take a commission, and you invoice Paddle at the end of the month. This is a major problem that I've encountered with entrepreneurs and makers. We currently use Paddle both for payment processing and it helps us with the invoicing and tax calculations by a lot, even if they have a roughly 6% commission rate. What do you use? Are there better solutions than Paddle?


Just used Apple's App Store services for indie projects; but for clients I've used Stripe for payment processing and their APIs are pretty nice. They also offer tax calculations I believe. You may want to check that out.
Full-stack / DevOps / Indie Hacker
In Hungary, I'm in the same situation. I thought a lot about which one I should use, Paddle or Stripe (I'm about to launch my first paid application). Paddle is more straightforward from an invoices point of view, but I like Stripe's API / dashboard. With Stripe, I have to create invoices manually for each user who subscribes, which is not a pain in the ass in the beginning. Here in Hungary, we have pretty weird tax calculations, so I have a problem with both solutions. Paddle: If I get more than ~8300 EUR / year from a single customer (so from Paddle), I have to pay +40% tax for anything after that, so Paddle will be pretty bad if I have ~700 MRR+. Stripe: I can set VAT to 27% (VAT in Hungary) for each invoice for the same ~8300EUR / year total income (this is just a simplified thing to use for the new companies). I will lose some money if the other country has lower VAT prices, but still, it's simpler. After that ~8300 EUR, I cannot use this system. I have to change to a VAT calculation called MOSS, which is the same as Paddle's (use country specific VAT calculations). But as the invoices are not from the same person, I do not need to pay that extra 40% tax, but I have to manually calculate the VATs for the MOSS system. So lots of cons/pros. Still not 100% sure which one to use. 🤷‍♂️
Founder, Product Designer - Fabrx Design
We've been using Paddle for over a year now, so far the service is great. We would've chosen Stripe but it's not supported in our country. If your monthly sales exceed a certain number, I believe you'll be able to negotiate the 5% commission.