# Hatching Dodo | Ep 4 | How an MoR Helps With Sales Tax Compliance

> Learn how a merchant of record simplifies sales tax compliance for your business. Dodo Payments handles global tax regulations so you can focus on growth.

- **URL**: https://dodopayments.com/videos/hatching-dodo-ep-4
- **Video**: https://www.youtube.com/shorts/DB3pmmxw7Pw

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In the fourth episode of Hatching Dodo, we discuss why young entrepreneurs should prioritize building their products and finding their first hundred loyal customers over worrying about complex sales tax compliance. However, the harsh reality is that you cannot simply ignore these obligations. Global tax authorities are becoming increasingly strict, and new regulations are constantly emerging to ensure that digital businesses pay their fair share of taxes in the jurisdictions where their customers reside.

For example, in the European Union, a significant regulation introduced in early 2024 now requires all payment gateways and financial institutions to share detailed merchant-level data. This data specifically tracks whether a merchant has collected and remitted the appropriate sales tax or VAT. Failure to comply with these rules is now resulting in substantial fines and legal challenges for many unsuspecting SaaS founders and digital product creators.

This is precisely where a merchant of record like Dodo Payments becomes invaluable. By acting as the legal seller of your products, we take full responsibility for sales tax compliance across the globe. We automatically calculate, collect, and remit the correct taxes for every transaction, ensuring that your business remains on the right side of international law. With Dodo Payments handling your global payments infrastructure, you can scale your business with confidence, knowing that the complexities of international tax management are being professionally managed on your behalf.