Bandcamp or Music Glue? The Merchant of Record Explained for Musicians

Sinéad Pratschke
Sep 11
3 min read

When you sell music online, the excitement often focuses on design, branding, or platform choice. But behind the scenes, there’s a crucial question that can make or break your compliance: who is the Merchant of Record?

Music Records with a Record Player & Headphones

What is a Merchant of Record?

The Merchant of Record (MoR) is the legal “seller of record.” They’re the entity responsible for:

Charging VAT or sales tax at checkout
Collecting that tax from the customer
Remitting it to the relevant tax authorities
Bearing the liability if anything goes wrong

If the platform you use is the MoR, they shield you from most of this complexity. If you are the MoR, then every cross-border sale you make could come with compliance obligations - sometimes in multiple countries.

For musicians selling physical merch, downloads, and bundles, this distinction matters a great deal.

Bandcamp: Simplicity Through Platform Responsibility

Bandcamp operates as the Merchant of Record.

That means:

Bandcamp automatically calculates and adds VAT, GST, or sales tax based on the buyer’s location.
They collect and remit those taxes to the relevant authorities.
Artists are paid net proceeds, without needing to account for VAT separately.

This system creates two advantages:

Lower administrative burden: no need to register for EU VAT OSS or US state sales tax individually.
Smoother fan experience: buyers don’t face surprise import VAT or confusing checkout processes.

In practice, Bandcamp removes the compliance headache. For many UK and EU artists, this makes it the go-to platform for digital downloads.

Music Glue: Control Comes with Responsibility

Music Glue takes a different approach. With their model, the artist (or their company) is the Merchant of Record.

That means:

You set the prices and control the storefront.
You are legally responsible for charging VAT/sales tax where required.
You must register for and file VAT in the UK (if over the £90,000 threshold), and potentially in the EU through the non-Union OSS scheme if you sell downloads across Europe.
For physical goods, fans outside the UK/EU may have to pay import VAT or duties on arrival unless you operate schemes like EU IOSS.

The benefit here is control: you fully own the branding, pricing, and customer experience. But the trade-off is that the tax administration, and the liability if it goes wrong, is yours to manage.

Why This Matters: Digital vs Physical

The MoR distinction is particularly important for digital downloads, where tax rules are strict:

In the UK, downloads are subject to 20% VAT if you’re VAT-registered.
In the EU, you must charge VAT at the buyer’s local rate, even for small sales.
Many US states also tax digital goods.

For physical goods (CDs, vinyl, t-shirts):

If you don’t collect VAT/sales tax, fans may face import VAT and courier handling fees.
This can harm the fan experience, even if it reduces your compliance load.

Making the Right Choice

If simplicity and compliance protection are priorities: Bandcamp is the safer option. They’re the Merchant of Record, so you can focus on the music rather than the tax rules.

If control, branding, and flexibility matter most: Music Glue puts you in charge; but only works if you’re prepared to manage VAT and sales tax obligations properly.

Hybrid approach: Many artists use Bandcamp for digital sales (low-risk, low-admin) and Music Glue for physical merch and fan engagement.

5 Questions to Ask Before Choosing a Platform

Who is the Merchant of Record? Is it the platform, or me as the artist?

Does the platform handle VAT/sales tax? If not, am I ready to register, collect, and file returns?

Where are my fans? EU downloads create more tax obligations than UK-only physical sales.

What’s my sales volume? If I’m under the UK VAT threshold, do I still need to think about EU compliance?

Do I value control or convenience more? Full control means higher admin. Convenience means letting the platform handle tax, even at the cost of some flexibility.

Final Thought

Choosing a platform isn’t just a creative or commercial decision. It’s a compliance decision too. Getting the Merchant of Record question right will save you headaches, keep your fans happy, and protect your income.