Merchant of Record

Our mission is to build the best monetization platform for developers.

Focus on validating, growing and scaling your monetization efforts. Leave calculating, capturing and remitting value-add taxes to separate governmental agencies to us.

Polar is proud to manage US Sales Tax & EU VAT as your merchant of record, and we'll expand our registrations and coverage as we grow.

Please note: You are still in charge of personal income tax filings and witholdings of the money you receive from Polar. Polar will only capture, report and remit value-add taxes. Please check with your local authorities or tax professionals for any local filing requirements you may have personally.

Polar Tax Registrations

Today, Polar has the following registrations:

1. US (Delaware). Polar Software Inc. is incorporated here.
2. EU VAT (Irish OSS VAT)
3. UK VAT. Soon available

Example

1. A customer from Sweden wants to subscribe to your $10/month tier.
2. You've setup the $10/month tier to include file downloads (tax applicable) & other custom benefits. Since these benefits are tax applicable, Polar will apply the local tax rate to the sale price.
3. Automatically, 25% (Swedish VAT) is applied & shown at checkout. The customer will see that the subscription is $10 with $2.5 VAT (25%) in addition, i.e $12.5 total per month. The customer can also enter a valid EU VAT registration number in case of a business purchase causing reverse charge rules to apply, i.e no VAT being added.
4. Once they subscribe, payments are made to Polar first. We capture the $2.5 VAT, deduct fees and transfer the rest to your payout account upon withdrawal.
5. Polar then declares & remits all VAT in accordance with EU VAT legislation via our Irish OSS VAT registration. We deal with the quarterly reporting, declaration & remittances as the merchant on record.

FAQ

Why is Polar not registered world-wide?

Many states and countries only require value-add taxation after a certain threshold has been reached. Registering world-wide upfront would be enormeously costly, time consuming, inefficient and unexpected practice.

We monitor transaction volume and sales through our platform against local thresholds to the best of our abilities. We will expand our registrations as needed once we meet local thresholds.

What markets will you expand registrations with next?

No promises and depends on how volume grows across our platform, but...

We've heard a lot of customer requests for:

• Canada
• India
• Indonesia

I want to use Polar, but have high volume in a market Polar is not registered in. What do I do?

That's fantastic! Reach out to us. We appreciate the heads-up and ability to discuss, and prepare registrations upfront.

Does Polar guarantee to support all countries?

No. We reserve the right to block sales in countries which might have:

• Zero to low thresholds, i.e early registration required
• Low historic or expected sales volume on Polar

We want to maximize sales for you so our intent is always to expand and register. However, in case the market is simply too small and the cost of operations too high, it would not make sense.