Transactions and fees on your invoice
Your invoice shows a variety of charges depending on where your store is located and what services your store uses.
Shipping label fees
After you buy a shipping label, the cost is billed through your Shopify account.
Shipping invoices are charged separately from your Shopify subscription. Shipping labels are not taxed in the United States, but Canadian law requires that taxes are applied. If you cancel a shipping label, then its cost will be refunded as a credit towards future label purchases. The cost won't be reimbursed directly to your Shopify account.
If you reach your daily billing threshold while buying shipping labels, then you can continue to buy shipping labels equal to 10% of your threshold amount while an invoice is generated. You can check your account's threshold amount in the Invoices section of the Billing page in your Shopify admin. Any purchases made at this time are included in your next bill. To learn more about how you're billed for shipping labels, contact Shopify support.
Subscription fees depend on your plan and subscription billing period.
If you're using Shopify Payments, then transaction fees don't apply for orders. Outside of India, transaction fees don't apply for manual payment methods. Manual payment methods include cash on delivery (COD), bank deposits, checks, test orders, and draft orders marked as paid or pending. Transaction fees don't apply for POS orders.
If you don't use Shopify Payments or a manual payment method, then transaction fees apply on orders brokered by Shopify in addition to the credit card rate charged by your payment provider.
The way that your account is billed depends on your store's transaction volume, any recurring app charges, and the payment provider you use.
Third-party payment providers
If your store uses a third-party payment provider, then you're billed either when the total of your store's fees and charges (including recurring charges for any apps that you have installed) exceeds one of your store's billing thresholds, or at the end of your monthly billing cycle. For example:
- Your account is billed at the end of the day if the total of your transaction fees and other outstanding charges exceeds your account's daily threshold amount.
- Your account is billed immediately whenever the total of your transaction fees and other outstanding charges exceeds your account's maximum threshold amount, which is twice the amount of your account's daily threshold
- If the total of your transaction fees and other outstanding charges is below your billing thresholds, then your account is billed at the end of your monthly billing period. If you change your Shopify plan, then you will be billed immediately for any outstanding and prorated amounts.
You can view your store's billing thresholds in the Invoices section of the Billing page in your Shopify admin.
Your first invoice won't include transaction fees, but your second invoice will include all transaction fees incurred up to that point.
If your store uses Shopify Payments, then the credit card processing rates are deducted from your orders automatically. For any other outstanding charges, including recurring charges for any apps that you have installed, you're billed either when the total of your outstanding charges exceeds one of your store's billing thresholds, or at the end of your monthly billing cycle, whichever comes first.
You can view your store's billing thresholds on the Account page in your Shopify admin.
Calculate your transaction fees
Shopify uses this formula to calculate transaction fees for a 30-day period:
The rate for transaction charges varies depending on your pricing plan.
See a breakdown of your transaction fees
To see a breakdown of your transaction fees by individual order, follow these steps:
From the Shopify admin, click Settings.
Click on the invoice you want to view in the Invoices section.
If an invoice includes transaction fees, then the Details column will have a link to the associated orders. Click to see the information.
In the panel that opens, you can view the details of the transaction fee for every order covered by this invoice.
Click an order to see the full details of a transaction.
Transaction fee cancelations and credits
To cancel transaction fees for any reason, you need to cancel and refund the related order. If a bill hasn't been issued when an order is canceled, then you won't be charged transaction fees. If transaction fees have already been billed, then the amount charged will be credited to your account. If you cancel an order without refunding payment then you won't receive credit for the transaction fee.
Transaction fees do not apply to orders that involve cash on delivery. Exceptions apply to India.
If you have been charged a transaction fee for a test order, then cancel the test order. A transaction credit will be added to your account that will be used towards your next set of transaction fees.
Domains, themes, and app fees
You will receive an invoice with a one-time charge for actions like registering a domain or purchasing a theme. You can view your account history in the Invoices section of the Billing page in your Shopify admin.
Theme purchases are nonrefundable.
The billing dates shown on your invoice are different for each app. This is because every app's billing cycle starts on the day that you download the app, which isn't necessarily the same day as a new subscription billing cycle.
Regardless of individual apps' billing dates, all app fees are charged on the standard 30-day invoice cycle that begins when you start your subscription.
You'll see app charges on your invoice as soon as you install an app, but fees won't be due until you receive your 30-day invoice by email.
If an app's billing cycle is out of sync with your 30-day invoice cycle:
- You might find that you're always paying part of an app's fees in arrears.
- You should take an app's billing cycle dates into account if you plan to remove the app.
Your invoice shows the total amount charged for your apps. To see a detailed breakdown of how these charges are calculated, click the Apps link in the Details column of the invoice.
The app fees breakdown shows four columns of information:
- App shows the name of each app.
- Description shows additional information for each app, including the billing period covered in this invoice.
- Date shows the date on which the fee for an app is added to your 30-day invoice. Typically it's the first day of the billing period shown in the Description column.
- App fee shows the amount payable for the app.
App billing cycles
Because you can install new apps at any time, you might find that you're being invoiced for them partway through the app billing cycle:
The only time you need to be aware of when you are billed for apps is if you're planning to remove an app. If you see charges for an app that you recently removed, then it's probably because you removed it partway through its billing cycle. Recurring app charges are generated on installation and then on the first day of an app's billing cycle. A charge will appear on the invoice even if you removed an app only a day or two after installation:
Occasionally, app billing cycles can overlap. Overlapping app billing cycles cause two app charges to appear on a single invoice. The invoice will show the app billing cycle dates, so you should be able to verify that the charges apply to two different billing cycles.
If your business is located in a Canadian or American jurisdiction where Shopify has a business presence, then Shopify is required by law to charge applicable taxes on your subscription. Shopify charges taxes only where required to do so by the tax authorities of your jurisdiction. These taxes are related to your Shopify subscription and are not influenced by the products or services you sell.
Shopify is a Canadian company operating in Canada with a presence in the following US states and districts:
- City of Chicago, Illinois
- City of Denver, Colorado
- New Mexico
- New York
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia
If your store is located in Canada or in any of the listed states or districts, then your subscription will be charged applicable taxes (HST/PST/GST or State/County/Municipal). If your store is located outside of Canada or the states and districts where Shopify has a presence, then taxes are not applied to your subscription charge.
You can see the taxes on a separate line in your invoice:
Australian GST exemption
If your store is based in Australia, then Australian goods and services tax (GST) applies to your Shopify subscription at a rate of 10%. However, Shopify does not collect GST on your payments if you register for Australian GST and add your Australian Business Number (ABN) to your Shopify store.
Your ABN is an 11 digit number used by the Australian government to identify your business. If you're registered for Australian GST, then add your ABN to qualify for GST exemption. Adding your ABN to your Shopify store and registering for Australian GST are both necessary to qualify for GST exemption.
To add your ABN to your Shopify store, follow these steps:
From your Shopify admin, go to Settings > Billing.
In the Business registration section, click Add ABN then enter your ABN.
If you are registered for Australian GST, then click I am registered for GST.
Credits to your account are shown as either of the following:
- Subscription credit is applied as a discount to your subscription fees.
- Transaction credit is applied as a discount to your transaction fees.
When you accumulate the equivalent in subscription or transaction charges, the credit is applied.