Paddle Integration

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

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

Webhooks

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

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

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.

Last updated: 7/1/2026
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