none
Invoicing to end customers RRS feed

  • Question

  • Hello,

    Who is responsible for issuing invoices to end customer in Remittance Countries, Microsoft or App provider? I couldn't figure it out from Office Store Agreement.

    Kind regards,

    Slaven

    Wednesday, June 5, 2013 9:09 AM

Answers

  • Hi IN2_Slavens

    I realize that text might be a little confusing, so I consulted a tax expert. Basically what the agreement is trying to explain is two cases:

    a. If you only sell to all the countries listed in Exhibit C, then for all those countries Microsoft will collect any additional taxes on your behalf and will send the users invoices for the additional tax collected. You only receive the revenue share on the portion without the tax when your sales are in these countries

    For eg. you pick a price of $4.99 for your app.

    In the US or Canada, Microsoft will charge $4.99 + (tax). But you will only get the revenue share on $4.99

    Countries in the EU and in Exhibit C are tax inclusive. So if $4.99 = Euro 4.99 for eg -- this includes the tax. Microsoft collects the tax and non-tax portion separately (in this case non-tax portion could be Euro 4.41, for eg.) Your revenue share will be based on Euro 4.41

    b. For any country you sell in outside Exhibit C, you are responsible to figure out whether you need to actually issue any tax invoices.

    In this example you pick $4.99 as the price in Australia (not in Exhibit C). Microsoft charges AU$4.99 and your revenue share is based on AU$4.99. If tax invoice requirements are to be met, in the countries not in Exhibit C, it is usually up to the app provider depending on the app purchaser's country.

    • Proposed as answer by JesBModerator Wednesday, June 12, 2013 6:46 PM
    • Marked as answer by IN2_slavens Thursday, June 13, 2013 7:41 AM
    Wednesday, June 12, 2013 4:40 PM

All replies

  • In ISV tax remittance countries, Microsoft does not charge the end customer any tax, and sends the end customer an invoice for the price of the app without any tax charged. The ISV then remits the tax component.
    Wednesday, June 5, 2013 11:19 AM
  • This is in contrast with paragraph 9.a of Office Store Agreement:

    Responsibility for Taxes Pertaining to Customer Purchases.  If you choose to have Microsoft make your App available for distribution to Customers in the United States, Canada, Taiwan, or any of the countries listed in the attached Exhibit C (“Remittance Countries”), Microsoft (or one of its Affiliates, vendors, or agents) will collect and remit sales, use, goods and services, value added, or similar taxes, if any, applicable to the distribution of your App in such country(s) through the Office Store.  You will provide any information reasonably requested by Microsoft in connection with the collection and remittance of taxes in the Remittance Countries.  Specifically, you will comply with the requirements listed on Exhibit D depending upon, among other things, (i) your country of residence and (ii) the countries designated by you in which you wish Microsoft to allow access to the Apps.

    Wednesday, June 5, 2013 11:38 AM
  • Hi IN2_Slavens

    I realize that text might be a little confusing, so I consulted a tax expert. Basically what the agreement is trying to explain is two cases:

    a. If you only sell to all the countries listed in Exhibit C, then for all those countries Microsoft will collect any additional taxes on your behalf and will send the users invoices for the additional tax collected. You only receive the revenue share on the portion without the tax when your sales are in these countries

    For eg. you pick a price of $4.99 for your app.

    In the US or Canada, Microsoft will charge $4.99 + (tax). But you will only get the revenue share on $4.99

    Countries in the EU and in Exhibit C are tax inclusive. So if $4.99 = Euro 4.99 for eg -- this includes the tax. Microsoft collects the tax and non-tax portion separately (in this case non-tax portion could be Euro 4.41, for eg.) Your revenue share will be based on Euro 4.41

    b. For any country you sell in outside Exhibit C, you are responsible to figure out whether you need to actually issue any tax invoices.

    In this example you pick $4.99 as the price in Australia (not in Exhibit C). Microsoft charges AU$4.99 and your revenue share is based on AU$4.99. If tax invoice requirements are to be met, in the countries not in Exhibit C, it is usually up to the app provider depending on the app purchaser's country.

    • Proposed as answer by JesBModerator Wednesday, June 12, 2013 6:46 PM
    • Marked as answer by IN2_slavens Thursday, June 13, 2013 7:41 AM
    Wednesday, June 12, 2013 4:40 PM