Understanding VAT, invoices, and Paddle billing

At Usermaven, we use Paddle as our payment processor and Merchant of Record (MoR). This means Paddle handles all billing aspects, including the complexities of VAT (Value Added Tax) and sales tax, on our behalf. This document aims to clarify why your final payment amount might differ from our advertised prices and explain how VAT/sales tax is managed.

Why your final payment might be higher: VAT/sales tax

Paddle, as an MoR, is legally responsible for collecting and remitting sales tax and VAT in various countries and regions worldwide. This means that depending on your location, the appropriate sales tax or VAT rate will be automatically added to your Usermaven subscription price at the point of sale.

How it works: Sales tax and VAT are determined by your billing location (country, and sometimes state or province). Paddle’s system automatically calculates and adds the correct tax amount to your invoice.
What you see: The price displayed on our website for Usermaven services is typically exclusive of these taxes. The VAT or sales tax is then added during the checkout process by Paddle, which results in the final, higher charge. You’ll see “Paddle” referenced on your invoices/receipts and potentially on your credit card statements.

Excluding VAT charges

If you are a VAT-registered business located outside the UK (and in some other specific B2B scenarios), you may be eligible to have the VAT excluded from your purchase.

Providing Your VAT ID:
- During Checkout: Many customers can enter their valid VAT ID directly during the checkout process. If your VAT ID is recognized and validated (often via systems like VIES for EU businesses), the tax will be deducted before you complete your payment.

Paddle VAT

After Purchase/For Future Billings: If you couldn’t enter your VAT ID during checkout, or if your subscription is already active, you can typically provide your VAT registration details to Paddle to exempt future billings. You may need to email your valid VAT documentation to Paddle’s buyer support team, often at assist@paddle.com. Be sure to include a reference to Usermaven and your customer account email address.
Sales Tax Exemption (e.g., for US Customers): Similarly, if you are a US-based customer with a sales tax exemption certificate (e.g., a non-profit organization), you can provide this documentation to Paddle, usually after the purchase, to request a refund of the sales tax and exemption from future charges. Paddle will review the documentation and process a refund if the requirements are met. This often involves emailing the certificate to assist@paddle.com.

Important note for UK-based customers

If you are a customer based in the UK, you will generally always be charged UK VAT. This is because Paddle, our Merchant of Record, is also a UK-based company.

Reclaiming VAT: If you are a VAT-registered business in the UK, you will be charged VAT on your Usermaven subscription. However, you can typically reclaim this VAT as part of your standard VAT return to HMRC. Paddle’s UK VAT ID will be provided on your receipt/invoice to facilitate this.
Why no exemption at point of sale for UK businesses? Unlike cross-border transactions within the EU (where the reverse charge mechanism can apply for B2B sales if a valid VAT number is provided), transactions between two UK-based companies (your UK business and Paddle UK) are subject to UK VAT.

Who is Paddle?

Paddle acts as a “reseller” of Usermaven’s software. This means legally, your purchase is from Paddle. They take on the responsibility for complex issues like global sales tax compliance, invoicing, and payment processing, allowing us at Usermaven to focus on delivering a great product to you.

Learn more about how Paddle handles tax as a Merchant of Record on their help guide .

Want to know which countries are subject to VAT and at what rates? Check out Paddle’s VAT country guide .

If you have questions or believe you’ve been incorrectly charged tax:

Please gather your invoice/receipt from Paddle.
Contact Paddle’s support team directly. They handle all billing and tax-related queries. You can usually reach them via their support portal at Paddle.net (which often has a chat/virtual assistant for looking up charges) or by emailing assist@paddle.com. Make sure to provide your order or invoice number.

We hope this clarifies how billing and taxes are handled for your Usermaven subscription. For general questions about a charge from Paddle or to look up a transaction, you can also visit Paddle.net .