Hi @plal hope all is well! There are a myriad of benefits for us from a company perspective from utilizing a merchant of record service, not only from a compliance standpoint, but from a risk/automated fraud protection standpoint.
We find this to be quite the norm for those who utilize a merchant of record service such as FastSpring. As FastSpring is the Merchant of Record, FastSpring is responsible to collect, file, and remit taxes for sales through their platform. At times, depending on your country, sales tax/VAT may be applicable. FastSpring calculates taxes in real time based on customers location. FastSpring automatically applies these taxes at checkout, as required by local regulations in the customers country.
If/when taxes are applied, this is fully transparent and the amount is made aware to you before actually completing the payment/check out process.
I should also point out, not all countries or locations have VAT applied (only some). A breakdown of the regions can be found in the FastSpring documentation for those curious.
As a heads up – we do support a variety of other payment methods that are not processed through FastSpring as well, you can choose your desired payment method on your RackNerd invoice, there should be a drop-down on the right hand side to switch between different payment options.