Let’s say that I have a Shopify app and this app charges merchants with monthly plans. Obviously, I have to issue invoices at the end of the month and I am based on an EU country. Who is the actual receiver of these invoices?
Do I need to issue an invoice for the end merchant? Can I just issue these invoices to Shopify as the customer, or maybe that can only happen if I am in some sort of partnership contract with Shopify?
Good question. First off, I’m not an accountant, nor am I based in the EU. But I can tell you how Shopify invoicing works.
Your app’s charges post to the merchant’s Shopify account, and your app’s subscription is a line item on that invoice.
You don’t need to issue invoices, that’s handled for you automatically.
Another misconception is that it is always issued at the end of the month, in fact it’s issued depending on when the merchant signed up for Shopify. This doc does a great job of explaining the timing: https://help.shopify.com/en/manual/your-account/manage-billing/billing-charges/types-of-charges/third-party-charges/app-charges
I believe there’s an option to define your business VAT number, that might be how Shopify properly attributes your app on the invoice. But again, I’m not based in the EU, nor am I a professional accountant.