Taxes on Partner sales
As a business, you're responsible for collecting and remitting taxes on your sales to the appropriate government authority. This guide provides an overview of how and when Shopify calculates taxes for app sales, theme sales, service sales, and referrals, and how these taxes are remitted.
Taxes on app and theme sales
If you're a Shopify Partner who sells apps or themes on the Shopify platform, then the jurisdiction of the merchant purchasing the app or theme might require that you remit taxes for these sales. Shopify calculates and remits these taxes to the local tax body if the following is true:
- Shopify has a business presence in the jurisdiction where the merchant is located.
- The local tax body requires Shopify to charge taxes on apps and themes.
Depending on your jurisdiction, you might have to fill out one or more joint election forms to permit Shopify to file certain taxes on your behalf. See the Joint election forms table for more information.
To learn more about the jurisdictions where Shopify has a business presence, refer to the billing documentation for merchants.
Joint election forms
This table contains a list of joint election forms that you might need to fill out. A joint election form indicates that Shopify collects and remits certain taxes on your behalf. The forms you need to fill out depend on your jurisdiction and where you are registered for taxes. You might need to fill out more than one of these forms, or none of them.
This list might not be complete. You should discuss any documentation requirements relating to your business with a local tax professional.
Canada Revenue Agency (CRA)
|If you file taxes with the Canada Revenue Agency, then you should complete a joint election form. You can download the joint election form from the Canada Revenue Agency website. When you have completed and signed the joint election form as the Principal, you can request Shopify’s signature on the form by sending the completed form to email@example.com. The Identification of agent information can be left blank. Shopify will return this form to you and you can retain it for your records.|
If you file taxes in British Columbia, then you must fill out a joint election form. You must submit this form to Shopify within 60 days of your first app or theme sale.
You can download the joint election form from gov.bc.ca. When you have completed and signed the joint election form as the Principal, you can request Shopify’s signature on the form by sending the completed form to firstname.lastname@example.org. Shopify will file this form for you with the British Columbia government.
|Quebec||If you file taxes in Quebec, then you should complete a joint election form. You can download the joint election form from the Revenu Québec website. When you have completed and signed the joint election form as the Principal, you can request Shopify’s signature on the form by sending the completed form to email@example.com. Shopify will return this form to you and you can retain it for your records.|
Taxes on service fees
If you're a Shopify Partner who charges service fees, then you can include your tax registration number and the amount of tax to charge merchants on the invoices that you submit. Shopify charges the merchant the specified amount and pays out your portion of the transaction with tax included. It is your responsibility to remit taxes to the appropriate government authorities. For more information about creating invoices for services, refer to Invoicing merchants and getting paid.
Taxes on referrals
Shopify pays you a commission for development store referrals, affiliate referrals, and Shopify Plus referrals. Because this is a service that you provide to Shopify, your jurisdiction might require that you remit taxes for this commission. Shopify calculates and pays these taxes in the following cases only.
Referrals performed by Canadian Partners
If you provide a Canadian business account number (BN) in your Partner account tax information, then Shopify adds an additional 13% Ontario HST to your referral commission payout. This tax is added to your payout and reflected on your referral commission invoice. You're responsible for remitting these taxes to the appropriate government authority.