FAQ: Invoicing & Taxation Process between Microsoft & Publisher in Microsoft Tax Remitted Countries

Q: If Microsoft is invoicing the customer in Microsoft tax remitted countries, how is the invoicing and taxation process managed between Microsoft and the publisher when the publisher receives payment from Microsoft?

 

A: The Publisher is paid out after deducting the transaction fee. Microsoft adds taxes on top of Publisher's deal value. You can find details here in the diagrams: Tax details for Microsoft commercial marketplace - Marketplace publisher | Microsoft Learn