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Lemon Squeezy vs Gumroad: fees, tax, and who each is for

Q: What is the best Lemon Squeezy or Gumroad alternative for builders?

If you want to stay the merchant (your brand, your customer) and pay less, paas.build on UniPaaS (an FCA-authorised PI, No. 929994) is 3.9% flat, live the same day, no company needed, in the UK, EU and US. If you specifically need worldwide tax remitted for you, an MoR like Lemon Squeezy or Gumroad is the trade-off - you hand over the transaction to get tax handled.

Both are Merchants of Record - the provider is the legal seller and remits your tax worldwide - but they serve different sellers and price very differently. Lemon Squeezy (now owned by Stripe) is built for SaaS and digital products; Gumroad for creators selling one-off downloads. Everything below is from their public pricing and reputable 2026 breakdowns.

The fee math, side by side

Lemon Squeezy: 5% + $0.50 per transaction, tax included (plus 1.5% on international and PayPal, 0.5% on subscriptions). Gumroad: 10% flat per sale plus payment processing (about 2.9% + 30c), roughly 13-16% at small tickets, and 30% on Discover marketplace sales. At AI-app and creator ticket sizes:

Ticket	Lemon Squeezy (5% + $0.50)	Gumroad (10% + processing)	paas.build (3.9% flat)
$9	$0.95 = 10.6%	~$1.46 = ~16%	$0.35 = 3.9%
$29	$1.95 = 6.7%	~$4.04 = ~14%	$1.13 = 3.9%

Sources: Lemon Squeezy pricing (Swell) · Lemon Squeezy MoR fees · Gumroad pricing (Swell). Gumroad's processing is charged separately and estimates vary; verify current rates on their sites.

Tax and Merchant of Record

This is what you are really buying with either one. As a Merchant of Record, the provider becomes the legal seller and calculates, collects and remits VAT, sales tax and GST worldwide. Lemon Squeezy has done this for SaaS for years and, since the 2024 Stripe acquisition, runs on Stripe's infrastructure. Gumroad switched to being the full MoR on every sale in January 2025. The trade-off is the same in both cases: you hand over the transaction - their name on the customer's statement, their relationship, their payout timing and risk policy.

When each one is the right pick

Pick Lemon Squeezy if you sell SaaS or digital products, want tax fully handled and solid subscription tooling, and are comfortable being on Stripe's managed rails. It is the cheaper of the two at most ticket sizes.

Pick Gumroad if you are a creator selling one-off downloads, want the simplest setup and a built-in audience via Discover, and can absorb the higher effective rate for that simplicity.

Pick paas.build if you want to stay the merchant - your brand, your customer, your data - and pay less: 3.9% flat, no fixed fee, live the same day via progressive KYB, no company needed, in the UK, EU and US. You do not get tax remitted for you (the MoR trade-off), but you keep the transaction and pay a fraction of the fee. Agent-native too: an AI agent can set it up.

FAQ

Is Lemon Squeezy or Gumroad cheaper?

Lemon Squeezy's 5% + $0.50 is usually cheaper than Gumroad for software and subscriptions above a few dollars. Gumroad's 10% flat plus processing (about 2.9% + 30c) lands around 13-16% at small tickets. Both bundle tax; Lemon Squeezy adds 1.5% on international and PayPal, and 0.5% on subscriptions.

Are Lemon Squeezy and Gumroad both Merchants of Record?

Yes. Both act as the Merchant of Record and remit VAT and sales tax worldwide. Lemon Squeezy was acquired by Stripe in 2024 and runs on Stripe's infrastructure. Gumroad became the full MoR on every sale in January 2025. In both cases the provider is the legal seller and owns the transaction.

What is the difference between Lemon Squeezy and Gumroad?

Lemon Squeezy targets SaaS and digital products with subscription tooling and a lower percentage fee, now on Stripe's rails. Gumroad targets creators selling one-off digital products with a flat-rate model and a Discover marketplace (30% on Discover sales). Lemon Squeezy is cheaper at scale; Gumroad is simplest for a single creator sale.

What is the best Lemon Squeezy or Gumroad alternative for builders?

If you want to stay the merchant and pay less, paas.build on UniPaaS (an FCA-authorised PI, No. 929994) is 3.9% flat, live the same day, no company needed, in the UK, EU and US. If you specifically need worldwide tax remitted for you, an MoR like Lemon Squeezy or Gumroad is the trade-off.

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