Understanding Your Puree Subscription with Paddle

Puree uses Paddle to manage subscription billing. This article explains how Paddle works and what it means for your Puree subscription.

How Paddle Works

When you subscribe to Puree, you're technically entering into a subscription agreement with Paddle.com Market Limited, a UK-based company. Paddle acts as a "Merchant of Record" — meaning they are the legal seller of Puree subscriptions.

This arrangement provides several benefits:

• Multi-currency support — Paddle handles payments in your local currency
• Local sales tax compliance — Paddle calculates and collects the correct GST, VAT, or sales tax based on your location
• Simplified billing — You receive invoices directly from Paddle

Paddle collects your subscription payment, deducts their fees and any applicable sales taxes, then pays Puree the net amount. This means Puree doesn't need to register for sales tax in every country where we have customers — Paddle handles all of that complexity.

Sales Tax (GST/VAT)

Paddle is responsible for calculating, collecting, and remitting all local sales taxes to the relevant tax authorities. This includes:

• GST (Goods and Services Tax) in countries like New Zealand and Australia
• VAT (Value Added Tax) in the UK and EU
• Sales Tax in various US states
• Other local equivalents worldwide

Because Paddle handles all tax obligations, you don't need to worry about whether the correct tax has been applied — Paddle ensures compliance automatically.

Business Customers: Providing Your Tax ID

If you're a GST/VAT-registered business, you have the option to provide your tax identification number (e.g., GST number, VAT number) to Paddle.

What happens when you provide a tax ID?

When a valid tax ID is provided, Paddle applies the reverse charge mechanism for business-to-business transactions. This means:

1. No sales tax is charged on your Puree subscription invoice
2. You become responsible for self-assessing and accounting for the tax with your local tax authority
3. You can typically claim this self-assessed tax as an input tax credit on your business tax return

For most GST/VAT-registered businesses, this results in a tax-neutral outcome — you account for the tax but claim it back as an input credit.

How to add or update your tax ID

You can add or update your business tax details directly through your Paddle receipt:

1. Find your latest receipt — Check your email for a receipt from Paddle, or contact us and we can send you the receipt link
2. Click "Edit Business Address" on the receipt
3. Enter your tax ID and business details
4. Save your changes — Future invoices will reflect your tax-exempt status

Your updated tax details will apply to future subscription payments.

Invoices and Receipts

All invoices and receipts for your Puree subscription come from Paddle, not from Puree directly. These invoices will show:

• Paddle as the seller
• Your subscription details
• Any applicable sales tax (unless you've provided a valid tax ID)
• Payment method used

Questions?

If you have questions about your Paddle subscription or need help updating your tax details, please contact us and we'll be happy to assist.

For general payment queries, you can also contact Paddle's buyer support directly at assist@paddle.com.