What is Paddle and how does it work?

Last updated: September 04, 2021

Using Xolo Leap in combination with Paddle will give you an all-in-one solution, which includes:

  • Collecting revenues using a payment gateway (handled by Paddle)

  • Invoicing your end-customer (by Paddle)

  • Handling VAT OSS (by Paddle)

  • Accounting and compliance of revenues earned via Paddle (by Xolo)

When using Paddle, the entity performing the sale to your end-customer will be Paddle (not the legal entity owned by you). Paddle will execute the sales and all related invoicing/payment collection from your end customer. Revenues collected from your customers (minus Paddle fees) will be transferred to your company and invoiced accordingly.

An additional advantage of Paddle is that unlike Paypal for example, it's possible to use Paddle without an Estonian IBAN which means that you can use it in combination with a payment service provider like TransferWise.

Xolo Leap and Paddle as a combined solution will manage the administrative tasks related to invoicing, accounting and compliance.

Paddle only supports the sale of products that are digital in nature like software, apps or digital downloads. Paddle is not a good fit if you offer services like consultation, support or design.

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