Merchant of Record
Who is legally responsible for a payment, and why it changes your compliance workload.
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.
Merchant of Record vs. payment provider
A payment provider moves money on your behalf. A Merchant of Record also becomes the legal counterparty and takes on the obligations around the payment.
Liability in creator payouts
When a creator payout breaks tax or compliance rules, the business that paid can be held responsible. A Merchant of Record can take on much of that liability, within the limits of its contract and the law.
DAC7 (EU platform reporting)
DAC7 makes digital platforms report what their sellers earn to EU tax authorities, including platforms outside the EU with EU-resident sellers.
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.