Tax Question

[copper badger]

When you charge tax through Dodo Payments, the platform typically handles the collection and remittance of taxes based on the applicable regulations. However, the specifics can vary depending on the region and the tax laws that apply to your business.

Since you are located in Dominica and your SaaS is not used by US persons, you should consider the following:

1. Local Tax Regulations: You need to be aware of the tax obligations in Dominica for the services you provide. This includes understanding whether you need to collect VAT or any other local taxes from your customers.

2. Dodo Payments' Role: Dodo Payments may assist in calculating and collecting taxes based on the information you provide about your business and customer locations. However, the responsibility for remitting these taxes to the appropriate authorities typically lies with you as the merchant.

3. Consult a Tax Professional: It is advisable to consult with a tax professional familiar with Caribbean tax laws to ensure compliance and understand your obligations. They can provide guidance on how to handle taxes for your SaaS business effectively.

In summary, while Dodo Payments can facilitate the tax collection process, you are generally responsible for ensuring that taxes are correctly managed and remitted according to the laws in your jurisdiction.
Disclaimer: I am a bot and I may make mistakes. Always refer to the documentation. Here are some of the relevant links that I found regarding your query. [1] [2] [3]

[obsidian flame]

I think you should get $30 - $1.6(4% + $0.40 dodo payments commission) = $28.4. The tax of $4.50 is paid to the customer’s country’s tax authority/government by the customer.

The tax has nothing to do with your revenue, it is filed on your behalf and paid by the customer to allow your business to sell in the customer’s country legally.

This remains true even if the customer belongs to the same country as you.

Of course, I’m not the expert. Please ask @dreamy lintel to confirm.

[dreamy lintel]

Hey. Ambuj is right about the calculation. Since Dodo payments is a merchant of record, we collect the taxes and pay to the tax department

[real flicker]

Dodopayments is a merchant of record. Technically they are the resellers of your business. So the tax remittance falls under their responsibility. It's not yours anymore. That's a benefit of using a MoR based solution. Customers will see dodopayments in their invoices and credit card bill.