Industry
Delaware LLC SaaS pricing: subscription tax, EU VAT, and sales-tax considerations
SaaS pricing for international audiences requires VAT, sales tax, and treaty consideration. Here is the framework.
EU VAT (OSS) for EU consumers
B2C SaaS sales to EU consumers trigger VAT collection. Non-EU sellers register through One Stop Shop (OSS) in one EU country (typically Ireland) and remit VAT to all EU countries via single filing.
Rates: 17-27% depending on consumer's country. Pricing must include or display VAT correctly.
US sales tax: state-by-state
SaaS sales-tax treatment varies by US state. Some states tax SaaS (Texas, New York, Washington); some do not (California for most B2B). Economic-nexus thresholds typically $100K or 200 transactions.
Use TaxJar, Avalara, or similar service for automated multi-state compliance.
MoR vs direct Stripe
Direct Stripe (2.9% + $0.30 per transaction): you handle VAT, sales tax, and global compliance. Fits high-volume B2B SaaS with dedicated tax/finance team.
MoR services (Paddle 5-9%, Lemon Squeezy 5-7%): platform handles VAT, sales tax, chargebacks, compliance. Fits B2C SaaS, indie devs, and small teams.
Form your Delaware LLC with Delewarellc
$297 + Delaware state fee, one-time. 8-10 day turnaround. Multilingual founder-led support.
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