Hey, why are taxes higher on Dodo Payments for the same category and same country compared to Stripe MoR? I cross-verified the official tax rates for a particular country and found that the taxes on Dodo Payments are indeed higher than others. Is this a way of overcharging merchants? #1314494170085326870
#Higher taxes on Dodo payments
warm charm
astral ridgeBOT
Hey, why are taxes higher on Dodo Payments for the same category and same countr...
Not overcharging—this usually comes down to tax calculation differences, not higher rates.
Common reasons you might see higher tax on Dodo vs Stripe MoR:
- Tax treatment differs: Some providers apply tax on top of fees or bundle items differently.
- Product classification: Same “category” on your end may map to different tax codes internally.
- Location detection: IP vs billing address vs payment method can change the applied rate.
- Inclusive vs exclusive pricing: One may back-calculate tax, the other adds it on top.
- Rounding + currency rules: Small differences can show up as higher totals.
If you have a specific transaction:
- Share country, product type, and amount with support
- They can break down the exact tax calculation line-by-line
If you want, paste one example here and I’ll help you sanity-check it.
warm charm
Yes, I can understand small differences due to rounding, pricing model, address detection, or other calculation factors. But in this case, the difference is huge — for example, you are charging around 18% tax while other MoR providers are charging around 5% for the same product category and country.
For example, you can compare the tax applied on the eBook category for Brazil on Stripe MoR vs your platform. The gap is too large to be explained by normal calculation differences.
warm charm
@open yarrow @hoary viper Could you check this please ?
warm charm
Is this specific to just Brazil?
No, I have noticed this for multiple countries, not just Brazil. I shared Brazil only as a reference/example because the difference there was very easy to compare and verify.
warm charm
@hoary viper have you checked on this?
velvet jungle
@last dome please look into this
last dome
Working with tax attornies on this
warm charm
Working with tax attornies on this
Hello, any update on this? I have verified this with multiple sources, and your tax charges appear to be significantly higher. If this issue is being ignored and there is no intention to resolve it, then it gives the impression that merchants are being intentionally overcharged.
last dome
Hi there
I am awaiting response from our tax attornies on this
stiff fjord
Hi there
I am awaiting response from our tax attornies on this
Any solution yet?
warm charm
Hello @hoary viper @last dome Any update on this ?
last dome
We got an initial response from our tax attornies
Seems like there was a change in Brazil tax law
We will be coming back with updates later this week
warm charm
@last dome Thanks for the update. However, my concern is not limited to Brazil.
Brazil was only one example I shared for reference. I've noticed similarly high tax rates in several other countries as well, including Egypt and Mexico.
When reviewing this with your tax attorneys, please check all countries rather than just Brazil, as the issue appears to be broader. If there are any discrepancies, I would appreciate having the tax rates aligned with the applicable local tax regulations.