Glossary
Merchant of record
Also called MoR, seller of record
The merchant of record is the business that legally sells to the reader, shows on their card statement, and owes the sales tax or VAT on the sale.
What it means
Every sale has a seller in the eyes of the law and the tax office. That seller is the merchant of record. They take the payment, handle refunds and disputes, and report and pay the tax.
When a reader buys a paperback from a big retailer, the retailer is the merchant of record, not the author. When a reader buys a novel or a nonfiction workbook from some creator stores, the store itself can be the merchant of record and pay the VAT for you. When you sell from a store that uses your own payment account, you are the merchant of record.
Why it matters when you sell direct
Being the merchant of record gives you the sale, the money and the reader relationship. It also gives you the tax duties. Ebooks are digital, and in many places, including the EU and the UK, VAT on digital sales is due in the reader’s country, not yours. That can mean registering for a scheme such as the EU One Stop Shop.
A store that acts as merchant of record takes that work off you, usually for a higher fee.
How Lanternbee handles it
Today, you are the merchant of record. You connect your own Stripe account, readers pay you directly, and Stripe pays out to you. Stripe Tax works out VAT or sales tax at checkout, and you file and pay it.
Coming: Lanternbee acting as merchant of record for ebooks and other digital editions, so EU VAT on those sales is handled for you. It is planned, not live.