If you’re scaling a Shopify or DTC brand internationally, there’s a compliance term you’ll start hearing again and again: Seller of Record.
At first glance, it sounds like legal jargon. But understanding what a Seller of Record (SoR) is—and what it can do for your business—might be the key to unlocking international growth without legal headaches or operational overload.
In this guide, we’ll break down what a Seller of Record is, why it matters, and how fast-growing brands like Ridge, Dolls Kill, Carpe, and The Wander Club are using Passport’s SoR model to go global with speed and confidence.
What Is a Seller of Record?
A Seller of Record is the entity legally responsible for selling a product to the end consumer in a specific market. That includes:
- Collecting and remitting VAT, GST, or sales tax
- Complying with local ecommerce regulations
- Providing legally required documentation
- Handling returns, invoicing, and disclosures
- Taking on risk related to customs and shipping liabilities
Think of it as the official “merchant of record” in the eyes of the customer and the government.
Why Does It Matter for International Brands?
When you sell across borders—especially into countries like the UK, EU, Australia, or Canada—you’re not just shipping. You’re entering a new regulatory environment.
Without a Seller of Record, you may be required to:
- Register for VAT/GST in every country you sell to
- File regular tax returns across multiple jurisdictions
- Set up legal entities or hire third-party consultants
- Deal with customs issues and potential fines
This isn’t just inconvenient. It’s risky—and potentially illegal.
What Happens Without a Seller of Record?
Without an SoR:
- You may be forced to suspend shipments if you’re not compliant
- You risk delays, seizures, or fines at customs
- Your customers may face surprise duties or refused deliveries
- You could be violating consumer protection laws in local markets
Worst case? Your brand reputation tanks internationally—and expansion stalls.
The Benefits of Using Passport as Your Seller of Record®
Passport’s Seller of Record® solution is built to solve all of this for you—so you can sell internationally without setting up foreign entities, hiring tax experts, or giving up control of your storefront.
Here’s what we handle:
- VAT/GST registration, collection, and remittance
- Compliance with country-specific ecommerce laws
- Fully landed duty-inclusive pricing (DDP)
- Accurate invoicing and disclosures for customs
- Branded tracking and localized returns
- Storefront freedom—you keep control of your checkout and CX
Unlike Global-e, which often requires you to relinquish your checkout experience and share revenue, Passport empowers you to stay in control of your brand while we handle the complexity behind the scenes.
Real Results from Real Brands
“Seller of Record has made global tax compliance something we don’t have to think about. Passport has been so proactive about reaching out as soon as we pass a threshold to make sure we stay compliant. It takes something off my plate and gives me one less thing to worry about.”
— The Wander Club
“We partnered with Passport to enhance the experience for our international shoppers and reduce operational costs. The SoR model helped us expand faster with full compliance.”
— Dolls Kill
Carpe used Passport’s SoR solution to scale into 35+ countries while maintaining contribution margins and avoiding tax filing chaos.
How It Works with Shopify
Whether you’re on Shopify, Shopify Plus, or a headless commerce setup, Passport integrates with your existing storefront to:
- Enable DDP checkout
- Show tax-inclusive pricing per region
- Calculate and collect duties and taxes in real time
- Display compliant, local invoices
- Streamline customs clearance and delivery
Ready to Expand Without the Complexity?
Here’s the truth:
Global growth isn’t just about logistics or storefronts. It’s about compliance—and building the infrastructure that keeps your business scalable as you grow.
With Passport’s Seller of Record®, we give you the legal and operational foundation to thrive in international markets—without sacrificing your storefront, your margins, or your time.
Global Growth, Built for Brands.
