Understanding Merchant of Record
A Merchant of Record (MoR) is the legal entity responsible for selling a product or service to the customer. When a platform acts as the MoR (as The Bookshelf does), it handles the operational, financial, and legal responsibilities of each transaction on behalf of the business using the platform (which is you, the author or publisher).
In short: the MoR is the party that processes the payment, collects taxes, and supports the customer after the sale.
The Bookshelf is the MoR for any author who decides to set up a direct sales store through our platform where they can sell both print and digital versions of their books to readers. Your book products are still fully owned and controlled by you, as well as sold on your website how you would like, and at the prices you prefer.
With the launch of direct sales features, The Bookshelf will:
- Calculate, collect, and remit applicable sales tax, VAT, or GST
- Manage tax registration requirements in different states and countries
- Keep up with changing tax laws and rates year to year
- Provide tax-related documentation and reporting as needed
Please do keep in mind that an MoR is not responsible for reporting or filing your personal or business taxes each year. The Bookshelf will provide the individual tax forms you need in order to file your taxes and make any necessary payments related to your income yourself, but our platform's tax obligations only extend to transactional sales to customers and not to your taxable income reporting requirements.
If you'd like to learn more about how a Merchant of Record works and the benefits of selling your books through one, check out this article.
