Paddle Integration

Paddle is a payments platform that acts as the Merchant of Record for your digital product sales. This means Paddle handles global tax calculation and remittance (VAT, GST, sales tax) on your behalf — your business is fully tax-compliant globally without any configuration.

When to Use Paddle Instead of Stripe

You sell digital products to customers worldwide and need automatic global tax compliance
You want to avoid registering for VAT/GST in every country you sell to
You want Paddle to handle payment disputes on your behalf

Setup

Create a Paddle account at paddle.com and complete business verification
In the Paddle dashboard, go to Developer Tools → Authentication and create API credentials
Note your Vendor ID, API Key, and Webhook Secret
In the admin, go to Settings → Payment Gateways → Paddle
Enter your Vendor ID, API Key, and Webhook Secret
Set environment: Sandbox for testing, Production for live
Set to Active

Webhooks

Configure the Paddle webhook URL in your Paddle dashboard under Developer Tools → Notifications:

https://your-store.com/api/payment/webhooks/paddle

Subscribe to: payment_succeeded, payment_refunded, subscription_created, subscription_cancelled, subscription_payment_succeeded, subscription_payment_failed.

Subscription Billing with Paddle

Paddle natively handles subscription billing including retries on failed payments and proration when customers upgrade or downgrade plans. Subscription status changes are synced to your store via webhooks.

Tax Receipts

Paddle generates tax receipts automatically and emails them to customers. You do not need to generate tax invoices separately for Paddle orders — Paddle is the seller of record.

Paddle Integration