How to set up payouts, tax and bank details on Microsoft Marketplace, step by step

Updated 12 Nov 2026

The short answer. Before you publish a transactable offer on Microsoft Marketplace, set up two things in Partner Center: a tax profile (a US tax form) and a payout profile (a bank account or, in some countries, PayPal). An Owner or Finance Contributor does it. Each submission can take up to 48 hours to validate, so at WeTransact we recommend starting both on day one.

In plain words. Two forms, two jobs. The tax profile tells Microsoft who you are for tax and how much to withhold. The payout profile tells Microsoft where to send your money. Partner Center is Microsoft's admin website for partners. A transactable offer is one that Microsoft bills the customer for.

Does this apply to you?

Probably yes, if you plan to sell a transactable offer. You can't get paid without these two profiles. We checked Microsoft Learn, Microsoft's official documentation site, on 8 November 2026 (pages listed below).

Not yet, if you only use "Contact me" listings or free offers. Microsoft Learn says free-only publishers need no tax forms or payout profile. You can add them later.

Be careful, if you want payouts in more than one country or currency. One seller ID holds one tax profile and one payment profile. A payment profile has one payout currency and one payout country. Plan this before you start.

How do payouts, thresholds and bank setup work on Microsoft Marketplace?

When a customer buys a transactable offer, Microsoft bills the customer, collects the money and pays you. You sign the Publisher Agreement with Microsoft Corporation, a US company, and it makes all payouts, Microsoft Learn says. For the whole store, read our guide to what Microsoft Marketplace is and how it works.

How payouts work, according to Microsoft Learn:

• Rhythm. Payments happen monthly and are typically sent by the 15th.
• Minimum. Payouts are issued only when sales reach a combined $50.00. The threshold is USD $50 in every country.
• Method. Microsoft pays by bank transfer (ACH in the US, SEPA in Europe), by wire, or in some countries by PayPal.
• Bank time. After Microsoft sends the money, it reaches you in about one business day by PayPal, two to three by ACH/SEPA and seven to ten by wire.
• Currency. You pick the payout currency in your profile. Microsoft converts the customer's currency at the exchange rate of the month of the transaction.

Three related guides: what Microsoft Marketplace costs, the full order of work and the Publisher Agreement you accept before you are paid.

How do I configure my tax and payout profile?

Before you start

• Who. Microsoft Learn's role table gives "manage payout and tax information" to Owner and Finance Contributor. It does not list it for Manager or Developer. By default, the person who accepted the Publisher Agreement is the Owner. Microsoft says best practice is at least two Owners. We agree: don't let one person's inbox block your payouts.
• One seller ID, one setup. For payouts in another country or currency, create another seller ID with its own profiles.
• No reuse from incentives. A tax profile made for Microsoft's incentives program cannot be copied to a seller account.

Step 1: create the tax profile

1. In Partner Center, select the Settings gear, Account settings, then Payout and tax profile assignment.
2. Pick the program and seller ID combination and select Edit.
3. Choose an existing tax profile or Create a new tax profile.
4. Select your permanent residence country or region and account type, then fill in the business details.
5. Launch the tax form and complete it. Save the PDF.
6. Select Finish at the top right first, then Complete at the bottom left.

Whatever your country, you fill out United States tax forms to sell any transactable offer, Microsoft Learn says. Publishers that meet US residency rules file a W-9, a form from the US tax authority (the IRS). Everyone else files a W-8. You complete it online, and usually print and mail nothing. For the choices on the form, Microsoft says to ask a tax advisor.

Tax IDs. The pages we read do not list which tax or VAT numbers you will need. Microsoft Learn says you are prompted for "the tax information required for your country/region". A US ITIN (an individual taxpayer number from the IRS) is not required to be paid or to claim treaty benefits.

Step 2: create the payout profile

1. On the same page, select your tax profile, then Edit under the payment profile.
2. Choose Electronic Bank Transfer or PayPal, where PayPal is available.
3. Select Create a new payment profile. Microsoft may redirect you to another Microsoft site and ask you to sign in again.
4. For a bank, enter the bank, account and beneficiary details. Only letters and numbers are accepted in the account fields.
5. Choose the payout currency. Microsoft warns you to be sure your bank accepts it.
6. Select Submit.

For PayPal, Microsoft Learn says the account must not block eCheck payments. PayPal holds payments for manual acceptance by default and returns any you don't accept within 30 days, so we recommend turning that off.

What Microsoft checks, and how long it takes

A tax and payout profile submission can take up to 48 hours to validate, Microsoft Learn says. The tax profile shows Pending Microsoft Validation, then Complete, or Action Required if it fails. After 48 hours of pending, you can open a support ticket.

Microsoft doesn't list every check. Two it does name: the Account holder name must be the exact name on the bank account, middle name included. And your tax form decides your withholding rate.

Our recommendation: start both profiles on day one. You need them before you can publish a transactable offer, and the wait is outside your control.

Who invoices the end customer, and how does tax work?

Who handles tax depends on where your customer is. Microsoft Learn sorts each country into one of three groups.

• Microsoft-managed. Microsoft acts as your agent and manages offer tax. It invoices the customer under its own registration number, and deducts the 3% fee, tax on that fee, taxes it collected and any withholding from your payout. The United States, United Kingdom, Germany, France, Australia and Canada are on this list. Professional services sold in the UK and South Africa are the exception: the publisher manages tax.
• Publisher-managed. You are solely responsible for tax registration, calculation, collection, remittance, checking the customer's business status and issuing tax invoices. Microsoft says it currently might not be able to give you the transaction details for those invoices. Any supported country not on the other two lists is publisher-managed.
• Reseller. Microsoft buys from you and resells, and handles customer tax. Microsoft lists Brazil here, and India for commercial sales. In Mexico, Microsoft is the reseller only when the customer buys through a local Enterprise Agreement.

Before you price, check your top customer countries on Microsoft's tax responsibilities page. When a Cloud Solution Provider (CSP, a Microsoft reseller) buys, Microsoft invoices that partner, and the partner handles tax on its invoice to the customer. See our reseller playbook.

Withholding tax. Withholding applies only to sales into the United States, Microsoft Learn says. For most publishers registered outside the US the default is 30%, reduced if your country has an income tax treaty and your W-8BEN (Part II) claims it. The profile's treaty status must show True and its expiration date must be in the future. Microsoft's payout FAQ also says withholding applies to US publishers that filed a W-9, so ask a tax advisor about your case.

Tax on the fee. Microsoft says it might collect tax on the 3% fee for customers in Australia, Canada, Mexico, New Zealand or Singapore.

Which countries and currencies does Microsoft Marketplace support?

Customers. Customers can buy in 141 geographies, set by billing address. Microsoft lists commercial marketplace as not enabled in China. In South Korea, Enterprise Agreement and CSP purchases are not supported, but credit cards are.

Currencies. Microsoft supports many transaction currencies, including EUR, GBP and USD. Its pages do not agree on the full list, so check the geographic availability page for your market.

Payouts. Microsoft's payout table marks Microsoft Marketplace "No" for Andorra, Kyrgyzstan, North Macedonia, Puerto Rico, Saint Vincent and the Grenadines, and Taiwan. Taiwan also appears in Microsoft's tax and currency lists, so confirm it with support. For bank payouts in the United States you can only choose USD. Elsewhere, any currency is selectable if your bank accepts it. PayPal works only in some countries, so check the table.

What if a payout fails or a profile is rejected?

Work down this list, which comes from Microsoft Learn's payout FAQ and earnings pages.

1. Profile status. If the tax profile says Action Required, reopen and correct it. Partner Center also shows "Action required - Update bank and/or tax profile" when details expire.
2. Expired tax form. In Payout and tax profiles, check the expiration date, select Edit and update the tax form.
3. Threshold. Earnings below $50 do not trigger a payment.
4. Payment hold. Payments can be put on hold in the payout profile. A hold stops the next monthly payment until you switch it off, before month end.
5. Payment status. In the Earnings report, Rejected means your bank rejected the money: contact your bank. Reversed means your bank reversed it, and Microsoft says it is sent again next cycle. Failed is a Microsoft system error, usually corrected without you.
6. The customer. If the customer has not paid, the order may not yet be eligible. Our payout timing guide covers this.
7. Support. Open a ticket from Partner Center if none of this explains it.

Microsoft Learn also warns that changing your payout account can take up to 48 hours and delay payment by up to one cycle. You still get the full amount.

Frequently asked questions

Do I need a payout profile to list on Microsoft Marketplace?

Only to sell a transactable offer. Microsoft Learn says free-only publishers don't need tax forms or a payout profile, and can add them later.

Who can set up the payout and tax profile in Partner Center?

Microsoft Learn names the Owner and Finance Contributor roles. The Owner is by default the person who accepted the Publisher Agreement.

How long does Microsoft take to validate the profiles?

Microsoft Learn says up to 48 hours for a tax and payout profile submission. If the tax profile still says Pending Microsoft Validation after that, open a support ticket.

What is the minimum payout on Microsoft Marketplace?

Microsoft Learn says USD $50 in all countries. Payouts are issued once sales reach a combined $50.00.

Does Microsoft handle sales tax or VAT for me?

In Microsoft-managed countries, Microsoft manages offer tax and invoices the customer. In publisher-managed countries, you do. Microsoft tells publishers to work with their own tax advisors.

Sources: Microsoft Learn, "Set up Microsoft Marketplace payout and tax profiles"; "Tax Responsibilities for Microsoft Marketplace"; "Tax Information for Microsoft Marketplace"; "Payout schedules and processes"; "Payout details by region"; "Getting paid in Partner Center"; "Payouts and tax profile FAQ"; "Microsoft Marketplace FAQ"; "Geographic availability and currency support for Microsoft Marketplace"; "Earnings in Partner Center"; "Roles, permissions, and workspace access for users" (all read 8 November 2026). Microsoft may change its rules at any time, so check the live pages before you act.

Want the full picture?

Everything here is also in our complete guide to Microsoft FY27 Marketplace incentives, with plain-words notes for newcomers. Get the complete FY27 guide

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