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Tax is one of the biggest operational differences between store billing and web billing. On app-store billing, the store abstracts most tax handling. On web billing, the tax model depends on the payment rail and merchant-of-record setup.

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Stripe model

With Stripe, the customer generally owns the merchant relationship. Stripe Tax can help calculate and report tax, monitor obligations, manage registrations, and support filing workflows. Stripe’s official documentation covers how Stripe Tax works, supported countries, registration monitoring, and filing. The customer should confirm its own tax posture with finance, accounting, and tax advisors.

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Paddle model

Paddle can be considered where merchant-of-record coverage is important. In a merchant-of-record model, Paddle is the seller of record for supported transactions and handles many payment and tax obligations within that model. Paddle support in Recurr is scoped as early access.

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What Recurr needs to know

Before migration, Recurr needs to know:
  • Which rail will process web subscriptions
  • Which countries and currencies are in scope
  • Whether tax is included or added at checkout
  • Whether prices need to stay at app-store parity
  • How invoices, receipts, and support language should describe charges
  • Which tax provider or merchant-of-record setup the customer uses

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Price parity

Recurr’s migration posture is price parity, not discounting. Tax-inclusive versus tax-exclusive presentation can affect what the subscriber sees at checkout, so it should be confirmed before any live cohort is contacted.