WPBay Merchant of Record

Sell software globally without handling customer VAT yourself

WPBay acts as the Merchant of Record for standard marketplace purchases. Customers buy from WPBay, while we handle checkout, payment processing, applicable customer-facing taxes, invoices, refunds and subscription billing.

  • Merchant of Record model
  • Applicable VAT calculation
  • Customer invoicing
  • EU B2B reverse charge
  • Subscription billing
  • Refund administration
  • Payment processing
  • Buyer-facing tax handling
WPBay Checkout
Tax calculated at checkout
WordPress Plugin Pro Professional license · yearly
Billing country
European Union
Business VAT ID
VAT details can be provided where applicable
Product Base price
Applicable tax Calculated at checkout
Total Final checkout amount
Complete purchase
WPBay is the Merchant of Record for standard marketplace purchases.
WPBay issues the customer invoice The buyer purchases from WPBay rather than directly from the independent product developer.
WPBay handles the customer transaction Checkout Payments VAT Invoices Refunds Subscriptions
Sell internationally with less administration

WPBay is the commercial seller to the customer

Selling software internationally creates more than a payment-processing problem. The customer’s country, business status, VAT information and the nature of the transaction can all affect how a purchase should be taxed.

Under WPBay’s Merchant of Record model, the customer purchases from WPBay rather than directly from the individual developer.

WPBay therefore handles the buyer-facing checkout, payment, applicable indirect tax, invoice, refund administration and subscription billing for standard marketplace transactions.

01
You publish your product You remain the creator and owner of the software listed on WPBay.
02
The customer buys from WPBay WPBay is the contractual seller for the standard marketplace transaction.
03
WPBay handles the transaction Payment, applicable VAT or similar customer-facing tax, invoicing and transaction administration are managed by WPBay.
04
You receive seller earnings Your earnings are credited according to the applicable WPBay seller commission structure.
Customer-facing compliance

What WPBay handles as Merchant of Record

You build and support the software. WPBay handles the commercial transaction with the buyer.

PAY

Checkout and payment processing

Customers complete their purchase through WPBay, so you do not need to maintain a separate payment-processing stack for marketplace sales.

VAT

Applicable VAT calculation

WPBay determines and applies customer-facing VAT where required for transactions processed through the marketplace.

TAX

Applicable indirect taxes

Where other customer-facing digital sales taxes apply to a transaction, they are handled through WPBay’s Merchant of Record framework.

INV

Customer invoices

WPBay issues the customer-facing invoice or purchase documentation because WPBay is the seller in the marketplace transaction.

B2B

EU reverse charge

Cross-border EU business purchases can receive the appropriate reverse-charge treatment where the required business and VAT conditions are satisfied.

SUB

Subscription billing

Customer-facing subscription charges and applicable tax treatment are processed by WPBay for recurring marketplace products.

REF

Refund administration

Refunds and payment reversals are handled under WPBay’s marketplace policies rather than requiring every seller to operate a separate process.

CB

Chargebacks and disputes

WPBay manages customer transaction disputes, chargebacks and payment reversals associated with marketplace purchases.

DOC

Transaction records

Customer orders, payment records and purchase documentation stay connected to the WPBay transaction instead of being split across individual seller systems.

Example checkout tax assessment
Seller of record WPBay
Supplier location Romania, EU
Customer location Checked at checkout
Business status Evaluated where relevant
VAT information Used when applicable
Final tax treatment Applied by WPBay
Correct tax at checkout

The buyer’s tax treatment is part of the checkout flow

Digital products can receive different tax treatment depending on where the customer is located and whether the customer is buying as a consumer or a business.

WPBay handles this on the customer-facing side of the transaction. The applicable amount is reflected at checkout before the buyer completes payment.

Sellers therefore do not separately calculate or add customer VAT to the same WPBay transaction.

EU VAT

Reverse charge for eligible EU business purchases

WPBay is operated by CODE IKIGAI SRL, a Romanian VAT-registered company.

For a standard WPBay purchase, VAT treatment is therefore based on the transaction between WPBay and the customer — not on the country where the individual plugin or theme developer happens to live.

Read the reverse charge guide
EU consumer Applicable VAT is generally charged according to the relevant consumer VAT rules.
EU business outside Romania with valid VAT details Cross-border B2B reverse charge will generally apply when the legal requirements are satisfied.
EU business without accepted VAT details VAT may need to be charged when business status or reverse-charge eligibility cannot be established.
Romanian customer The transaction is domestic for WPBay, so Romanian VAT rules apply rather than the standard cross-border EU B2B reverse charge.
Customer outside the EU EU VAT may not apply, while other local indirect-tax rules can still be relevant depending on the transaction and jurisdiction.
Recurring products

Tax handling stays connected to subscription billing

Software businesses increasingly sell through monthly or yearly subscriptions rather than one-time licenses.

WPBay manages the customer-facing subscription billing for recurring marketplace products. When the customer is charged through WPBay, the transaction remains part of the same Merchant of Record relationship.

That keeps checkout, renewals, refunds and customer-facing tax administration inside one marketplace system instead of forcing sellers to combine multiple billing and tax tools.

Checkout
Customer starts the subscription WPBay handles the initial marketplace charge and applicable customer-facing tax.
Renewal
Recurring billing stays with WPBay Subscription renewals are processed through WPBay rather than directly by the independent developer.
Refund
Refund records stay connected Eligible refunds are administered through the marketplace transaction.
Invoice
Buyer documentation comes from WPBay WPBay remains the commercial seller to the customer.
A clear division of responsibility

What WPBay handles — and what you still handle

Merchant of Record simplifies the customer transaction. It does not remove the seller’s own business, accounting or income-tax responsibilities.

WPBay handles

The standard transaction between WPBay and the end customer.

  • Customer checkout
  • Payment processing
  • Applicable customer-facing VAT
  • Applicable customer-facing indirect taxes
  • Customer invoices and purchase documentation
  • EU B2B reverse-charge treatment where applicable
  • Subscription billing
  • Refund administration
  • Chargebacks and payment disputes

You still handle

Your own business and the earnings you receive from WPBay.

  • Declaring your WPBay earnings
  • Your income or corporate tax
  • Your own bookkeeping and accounting
  • Your local tax registrations where required
  • Seller-side VAT obligations where applicable
  • Keeping payout and fee records
  • Providing correct business and tax information
  • Seller-to-WPBay invoicing where required locally
  • Other local reporting obligations applicable to your business
Sell beyond your home country

Grow internationally without becoming the checkout merchant everywhere you sell

A customer in another country should not force you to rebuild your payment and tax infrastructure.

With WPBay, standard marketplace transactions remain between the buyer and WPBay. You can concentrate on your software, pricing, support and product growth while WPBay manages the commercial layer of the customer purchase.

One marketplace checkout Customers use the same WPBay buying flow regardless of which independent developer created the product.
One customer invoice source WPBay issues buyer-facing purchase documentation for standard marketplace transactions.
One billing relationship The buyer purchases from WPBay rather than establishing a separate billing relationship with every developer.
Tax separated from seller earnings Applicable customer transaction taxes are handled within the marketplace rather than becoming part of your own checkout implementation.
Recurring billing supported Monthly and yearly products can use the same Merchant of Record structure.
You keep control of the product Merchant of Record does not transfer ownership of your plugin, theme or other software to WPBay.
FAQ

Merchant of Record and tax questions

What does Merchant of Record mean on WPBay?

For standard marketplace transactions, WPBay is the contractual seller to the customer. The buyer purchases from WPBay, and WPBay handles checkout, payment processing, customer billing, applicable VAT and tax obligations, invoices, refunds and subscription billing where relevant.

Do I need to charge VAT directly to WPBay customers?

For a standard WPBay marketplace purchase, you are not the direct seller to the customer. WPBay handles the customer-facing VAT treatment and issues the customer purchase documentation.

You should not create a second sales invoice to the customer for the same WPBay purchase.

Does this mean WPBay sellers have no tax obligations?

No. WPBay handles the customer-facing transaction under its Merchant of Record model, but sellers remain responsible for taxes and accounting related to the earnings they receive from WPBay.

Depending on your country and business structure, that can include income or corporate tax, VAT registration, bookkeeping, declarations or issuing an invoice to WPBay.

How does EU VAT reverse charge work on WPBay?

For an eligible VAT-registered business in another EU member state, the normal cross-border B2B reverse-charge mechanism will generally apply when the required VAT and business details are valid.

The relevant supplier for the customer transaction is WPBay, operated by CODE IKIGAI SRL in Romania, rather than the individual product developer.

What happens when the customer is in Romania?

Because WPBay is operated from Romania, a Romanian customer represents a domestic transaction for WPBay. The standard cross-border EU B2B reverse-charge mechanism therefore normally does not apply and Romanian VAT rules govern the transaction.

Who issues the invoice to the customer?

WPBay issues the customer-facing invoice or purchase documentation because WPBay is the Merchant of Record and contractual seller for standard marketplace purchases.

Who handles tax on subscription renewals?

WPBay manages customer-facing subscription billing and applicable tax treatment for renewals processed through the marketplace.

Does WPBay file my company or personal tax return?

No. WPBay does not replace your accountant and does not file your income, corporate or personal tax obligations. Sellers remain responsible for their own accounting and local tax compliance.

This page explains WPBay’s marketplace structure in general terms and is not tax, accounting or legal advice. Tax treatment can depend on the country, business type, transaction and individual circumstances. Sellers should consult a qualified local accountant or tax professional regarding their own obligations.
Build software. Let WPBay handle the customer transaction.

Sell WordPress products internationally without building your own VAT and checkout infrastructure

List your product on WPBay and use a marketplace where checkout, payments, customer invoicing, applicable transaction taxes and subscription billing are handled under one Merchant of Record model.