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Lemon Squeezy

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Lemon Squeezy

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Payments and tax handling for software sellers as merchant of record.

Developer ToolsCCompassPad editorial

Lemon Squeezy is a payments platform for software businesses that acts as the merchant of record. That means the company is the legal seller of record for each transaction, and it takes on the obligations that follow: sales tax and VAT registration, collection, and remittance in the jurisdictions where a customer buys. For a small software business selling internationally, that is the whole proposition. Instead of registering for VAT in the EU, the UK, and elsewhere as revenue grows, the seller handles one counterparty. The platform provides checkout, licence keys, subscription management, and a customer portal, and it pays out on a schedule. The cost is a higher percentage per transaction than a plain payment processor, because the merchant-of-record role absorbs tax and compliance work. Businesses with high volume sometimes move to a processor and handle tax themselves once the fee difference exceeds the cost of doing so.