EU-based app developer — do you issue invoices to merchants for app subscriptions? (VAT question)
Hey everyone,
My app (Pointify COD Pickup Points) just got approved on the App Store 🎉 and now I'm trying to figure out the billing/tax side as a Hungarian (EU) developer.
I have two questions I can't find a clear answer to — Shopify support just told me to ask a local tax advisor, which isn't super helpful.
Question 1 — Partner payouts & VAT
When Shopify pays me out for app subscriptions, who is legally my customer — Shopify (Canada) or the individual merchants? Does reverse-charge apply since Shopify is a non-EU entity, or do I need to charge Hungarian VAT?
How do you guys handle this? Do you issue invoices to Shopify for your payouts, or just treat it as a B2B reverse-charge service?
Question 2 — Invoice automation liability
My app auto-generates VAT invoices for merchants' end customers via a third-party invoicing API (Számlázz.hu). The invoices are issued in the merchant's name, not mine. As the developer providing this tool, do I have any legal responsibility for those invoices, or is it 100% on the merchant?
Would love to hear from other EU devs, especially anyone who's already been through an audit or gotten a clear answer from their accountant.
Thanks!