Wish Merchant Tax Policy


The rules and obligations regarding “Marketplace Facilitators” and remote sellers vary from country to country and in the U.S. from state to state. As a result of operating its e-commerce marketplace, Wish has determined that it is considered a “Marketplace Facilitator” and is required to collect and remit VAT/GST or sales taxes on all taxable sales of tangible personal property that it facilitates for delivery to the tax jurisdictions where Wish registered as a “Marketplace Facilitator” on behalf of its merchants in certain countries and U.S. states as indicated below.

For those tax jurisdictions where Wish is not required to collect on behalf of merchants, Wish offers, on a voluntary basis, the ability for merchants to provide information as to which countries and states they are registered to collect VAT/GST or sales taxes. Based on this information, Wish will calculate the relevant VAT/GST or sales taxes and report these back to the merchant for remittance to the tax authorities. Merchants who avail of the Tax Settings service are still ultimately responsible and liable for the accuracy and remittance of applicable VAT/GST and sales taxes due.

It is crucial for calculating the correct VAT/GST or sales taxes that any information provided to Wish by merchants in the Tax Settings should be current and accurate.

Please see this FAQ for more information on how Wish calculates the VAT/GST and sales taxes using the information provided by merchants in their tax settings.

Wish uses this page to communicate its practices and policies regarding transaction taxes calculation, collection, and reporting.


Jurisdictions where Wish is registered as a “Marketplace Facilitator”

1. United States

As a marketplace facilitator, Wish is required to collect state sales tax on sales in the states made by or on behalf of sellers on the Wish marketplace. Sales made on the Wish marketplace will have state sales tax applied to the cost of the purchase and is collected during the check-out process, generally as a separate line item. Note that the rates applied may vary based on local tax rates. Wish will be responsible for all obligations as the retailer, and required to maintain transaction records. You may want to speak with a tax professional to understand your obligations, if any.

Following is a list of U.S. states where Wish has determined it is required to collect and remit sales tax as a marketplace facilitator:



U.S. States / Territories Effective Date Link
Alabama 4/1/2019 https://revenue.alabama.gov/sales-use/simplified-sellers-use-tax-ssut/
The following municipalities within Alaska:
  • Juneau, City & Borough
  • City of Wasilla
  • Kenai Peninsula Borough
  • City of Kenai
  • City of Homer
  • City of Seldovia
  • City of Soldotna
  • City of Seward
  • City of Borough of Wrangell
  • City of Nome
  • Haines Borough
4/1/2020 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
https://arsstc.org/
The following municipalities within Alaska:
  • City of Adak
  • City of Palmer
  • City of Cordova
  • City of Kodiak
  • City and Borough of Petersburg
5/1/2020 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
https://arsstc.org/
The following municipalities within Alaska:
  • City of Gustavus
  • City of Unalaska
  • City and Borough of Sitka
  • City of Dillingham
  • City and Borough of Yakuta
6/1/2020 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
https://arsstc.org/
The following municipalities within Alaska:
  • City of Craig
  • City of Tenakee Springs
  • City of Saint Paul
7/1/2020 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
https://arsstc.org/
The following municipalities within Alaska:
  • Ketchikan Gateway
  • City of Mountain Village
  • City of Togiak
  • City of Toksook Bay Borough
8/1/2020 https://arsstc.munirevs.com/show-page/?page=26
https://arsstc.org/
The following municipalities within Alaska:
  • City of Thorne Bay
  • City of Bethel
9/1/2020 https://arsstc.munirevs.com/show-page/?page=26
https://arsstc.org/
The following municipalities within Alaska:
  • City of Houston
  • City of Ketchikan
10/1/2020 https://arsstc.munirevs.com/show-page/?page=26
https://arsstc.org/
The following municipality within Alaska:
  • City of Saxman
12/1/2020 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
https://arsstc.org/
The following municipality within Alaska:
  • City of North Pole
4/1/2021 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
The following municipality within Alaska:
  • City of Aleknagik
5/1/2021 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
The following municipality within Alaska:
  • City of Ouzinkie
7/1/2021 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
The following municipality within Alaska:
  • City of Selawik
8/1/2021 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
The following municipality within Alaska:
  • City of Aniak
  • City of Nenana
10/1/2021 http://arsstc.org/wp-content/uploads/2020/02/ARSSTC-Notice.pdf
Arizona 10/1/2019 https://azdor.gov/news-events-notices/news/new-tpt-law-remote-sellers-and-marketplace-facilitators-starting-october-1
Arkansas 7/1/2019 https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/remote-sellers
California 10/1/2019 https://www.cdtfa.ca.gov/industry/MPFAct.htm
Colorado* 10/1/2019 http://leg.colorado.gov/bills/hb19-1240
The following home rule municipalities within Colorado: 2/1/2021 Click a city to see relevant legislation
The following home rule municipalities within Colorado: 6/1/2021 Click a city to see relevant legislation
The following home rule municipalities within Colorado: 8/1/2021 Click a city to see relevant legislation
Connecticut 12/1/2018 https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en
Georgia 4/1/2020 http://www.legis.ga.gov/Legislation/20192020/188085.pdf
Florida 7/1/2021 https://flsenate.gov/Session/Bill/2021/50/BillText/er/PDF
Hawaii 1/1/2020 http://files.hawaii.gov/tax/legal/tir/tir19-03_rev2.pdf
Idaho 6/1/2019 https://tax.idaho.gov/n-feed.cfm?idd=4279
Illinois 1/1/2020 https://www2.illinois.gov/rev/research/publications/bulletins/Documents/2019/FY-2019-05.pdf
Indiana 7/1/2019 https://www.in.gov/dor/6744.htm
Iowa 1/1/2019 https://tax.iowa.gov/marketplace-facilitators
Kansas 7/1/2021 http://www.kslegislature.org/li/b2021_22/measures/sb50/
Kentucky 7/1/2019 https://revenue.ky.gov/News/PublishingImages/Pages/2019-Kentucky-Tax-Changes/2019%20Kentucky%20Tax%20ChangesV3.pdf
Louisiana 9/1/2020 http://www.legis.la.gov/legis/ViewDocument.aspx?d=1176644
Maine 10/1/2019 https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1064&item=1&snum=129
Maryland 10/1/2019 https://taxes.marylandtaxes.gov/default.shtml
Massachusetts 10/1/2019 https://www.mass.gov/info-details/remote-seller-and-marketplace-facilitator-faqs
Michigan 1/1/2020 https://www.michigan.gov/taxes/0,4676,7-238-43519_43529-474288--,00.html
Mississippi 8/1/2020 http://billstatus.ls.state.ms.us/documents/2020/html/HB/0300-0399/HB0379CS.htm
Minnesota 10/1/2019 https://www.revenue.state.mn.us/sales-tax-faqs-remote-sellers
Nebraska 4/1/2019 http://www.revenue.nebraska.gov/info/notice_for_remote_sellers.html
Nevada 10/1/2019 https://tax.nv.gov/
New Jersey 5/1/2019 https://www.state.nj.us/treasury/taxation/remotesellers.shtml
New Mexico 7/1/2019 http://realfile.tax.newmexico.gov/FYI-105%20-%20Gross%20Receipts%20&%20Compensating%20Taxes%20-%20An%20Overview.pdf
New York 6/1/2019 https://www.tax.ny.gov/pdf/memos/sales/m19-2s.pdf
North Carolina 2/1/2020 https://files.nc.gov/ncdor/documents/files/SD-20-1-Marketplace-Facilitators-Marketplace-Sellers-FINAL-DRAFT-01282020.pdf
North Dakota 10/1/2019 https://www.nd.gov/tax/user/businesses/formspublications/sales-use-tax/streamlined-sales--use/marketplace-facilitator
Ohio 9/1/2019 https://www.tax.ohio.gov/sales_and_use/MarketplaceFacilitators.aspx
Oklahoma 1/1/2019 https://www.ok.gov/tax/documents/Wayfair%20FAQs_083018.pdf
Pennsylvania 6/1/2018 https://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/OnlineRetailers/Pages/default.aspx
Puerto Rico 10/1/2020 http://www.tucamarapr.org/dnncamara/Documents/Measures/44003c94-d391-443b-afe8-bc3576cabb12.pdf
Rhode Island 7/1/2019 http://www.tax.ri.gov/Advisory/ADV_2019_11.pdf
South Carolina 5/1/2019 https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/RR18-14.pdf
South Dakota 3/1/2019 https://dor.sd.gov/businesses/taxes/
Tennessee 10/1/2020 https://www.tn.gov/content/dam/tn/revenue/documents/notices/sales/sales20-15.pdf
Texas 10/1/2019 https://comptroller.texas.gov/taxes/sales/remote-sellers.php
Utah 1/1/2020 https://tax.utah.gov/sales/marketplace-facilitators
Vermont 9/1/2019 https://tax.vermont.gov/business-and-corp/sales-and-use-tax/marketplace
Virginia 7/1/2019 https://www.tax.virginia.gov/remote-sellers-marketplace-facilitators-economic-nexus
Washington 6/1/2018 https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-facilitators
Washington D.C. 4/1/2019 https://otr.cfo.dc.gov/release/effective-april-1-marketplace-facilitators-must-collect-district-sales-taxes-its-sellers
West Virginia 7/1/2019 https://tax.wv.gov/business/salesandusetax/ecommerce/marketplacefacilitators/Pages/MarketplaceFacilitators.aspx
Wisconsin 1/1/2020 https://www.revenue.wi.gov/Pages/Businesses/marketplace-providers-sellers.aspx
Wyoming 7/1/2019 http://revenue.wyo.gov/
 

*Excluding Colorado home rule city sales and use tax for home rule municipalities not listed here.




2. European Union (EU)

27 Member States of the European Union (EU)

For transactions made on Wish on or after July 1, 2021

Effective July 1, 2021, the European Union (EU) 27 member states abolished the low value VAT consignment relief for goods less than or equal to EUR 22. As a result, e-commerce marketplace facilitators like Wish will be required to collect and remit VAT on sales of goods based on the EU country where the goods arrive as described below.

  1. Goods delivered from outside the EU with a consignment value less than or equal to EUR 150, or
  2. Goods delivered from within the EU, where the merchant is not domiciled in the EU or does not have an EU establishment

For the supplies listed above, Wish will calculate and collect VAT from customers at checkout and remit the VAT directly to the tax authorities via Wish’s Import One Stop Shop (IOSS) or One Stop Shop Union (OSS) scheme registration. For further information please visit EU Commission published communication at:

https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

In order to help clear customs for orders shipped from outside the EU to EU customers with a consignment value of less than or equal to EUR 150 in an expedient manner, Wish will provide merchants with its Import One Stop Shop (''IOSS'') number. This number allows the freight forwarder to import the shipment into the EU without having to pay import VAT.

The merchant agrees that their use of Wish’s IOSS number is only in relation to sales carried out via the Wish online marketplace. If the merchant uses Wish’s IOSS number inappropriately in any way, Wish may, at its sole discretion, take action against the merchant, including but not limited to withholding or offsetting amounts otherwise due to the merchant, issuing a penalty, suspending the merchant’s account. Inappropriate use of Wish’s IOSS number includes, but is not limited to, the following scenarios:

For EU-bound consignments valued at less than or equal to 150 EUR and shipped from outside of the EU and outside of Mainland China, merchants shall coordinate the customs clearance of such consignments in accordance with applicable regulation and agree to take all appropriate steps required to ensure the accuracy and completeness of required customs declarations.

According to the e-commerce regulations, marketplace facilitators like Wish do not have to remit VAT for the below listed sales:

  1. Goods delivered from outside the EU with a consignment value greater than EUR 150. However, as outlined below, the import VAT and custom duties that are due at importation will be collected from the customers and remitted to the appropriate tax authorities by the merchant.
  2. Goods delivered within the EU (i.e., from and to the EU), where the merchant is domiciled in the EU or has an establishment in the EU. In this case, the VAT will be collected from the customers but the EU domiciled merchant has the obligation of remitting VAT to the appropriate tax authorities.

For the goods delivered from outside the EU with a consignment value greater than EUR 150, the merchant agrees to fulfill the order under the Incoterm DDP (Delivery Duty Paid). Wish will calculate and collect VAT from customers at checkout and pass the VAT amount to the merchant, and the merchant will be responsible for remitting import VAT in the EU country of destination. The merchant is also required to remit custom duties if applicable.

EU domiciled merchants or non-EU domiciled merchants with an EU establishment shipping orders within the EU may opt into Tax Settings in their Merchant Dashboard whereby Wish will collect VAT based on the EU country of arrival of the goods and pass the VAT to the merchant, who must then remit to the appropriate tax authorities.

In addition to the situations described above, Wish reserves the right to collect and remit VAT associated with EU customer purchases of merchant products not described above. In addition, if a merchant prefers to include VAT in the product and/or shipping price and remit this VAT to the appropriate tax authorities, a merchant may provide information demonstrating that it has the structure and means to collect and remit VAT in the EU. This information must be accurate and kept up to date. As previously mentioned, Wish reserves the right to withhold or offset funds due to a merchant if Wish in good faith believes there is a VAT underpayment to cover any VAT underpayment, or penalties, interests or costs associated with the underpayment.




3. The Rest of the World (VAT/GST).

The following countries have specific rules that apply to the Wish marketplace.


Australia

For transactions made on Wish after July 1, 2018

Effective July 1, 2018, Australia requires out-of-country sellers, including electronic distribution platforms, to collect GST on sales within Australia if the seller meets certain criteria. Wish has determined that it is considered an electronic distribution platform and likely meets the accounting requirements due to the online marketplace it operates. As a result, Wish is currently registered to collect GST in Australia.

Sales made on the Wish marketplace will have GST included in the cost of the item. Please note that rates applied may vary based on the applicable GST rate of the item(s). Customers in Australia will pay GST as part of their purchase on the Wish marketplace.

Section 84-81(3) of the Australian GST Act.


Canada

For transactions made on Wish after May 26, 2021

Effective May 26, 2021, Wish will start collecting and remitting provincial sales tax (PST) on transactions placed on Wish within the below listed Canadian provinces. Please note that merchants will still be responsible for collecting and remitting goods and services tax (GST) for transactions placed on Wish within the below listed Canadian provinces:

Canadian Provinces Effective Date Link
Saskatchewan 5/26/2021 Click a province to see relevant legislation.

New Zealand

For transactions made on Wish after December 1, 2019

Effective December 1, 2019, New Zealand requires certain non-residents, including operators of online marketplaces like Wish, to collect and remit New Zealand GST (goods and services tax). Sales made on the Wish marketplace will have GST included in the cost of the item. Please note that rates applied may vary based on the applicable GST rate of the item(s). Customers in New Zealand will pay GST as part of their purchase on the Wish marketplace.

Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill of New Zealand


Norway

For transactions made on Wish after April 1, 2020

Effective April 1, 2020, Wish has been determined to be an online marketplace facilitator that is required to collect and remit VAT on behalf of sellers on customer purchased items with less than NOK 3,000. Norwegian VAT applied to the cost of the purchase including shipping and is collected during the check-out process. Customers purchased goods with value above NOK 3,000 will be required to pay VAT on importation i.e. rules remain unchanged with current regulations on importation of goods into Norway.

Learn more about Norwegian VAT On E-Commerce - VOEC here.


UK

For transactions made on Wish after January 1, 2021

Effective January 1, 2021, UK abolishes the low value consignment relief for goods less than or equal to GBP 15 and requires an ecommerce marketplace to follow the deemed supplier rules, which will make Wish responsible for collecting UK VAT on the below listed sales delivered to customers in the UK that are ordered on the Wish platform.

  1. Goods delivered from outside the UK with a consignment value less than or equal to GBP 135, and
  2. Goods delivered from within the UK, where the merchant is not domiciled in the UK.

For the supplies listed, Wish will calculate and collect VAT from customers at checkout and remit the VAT to the UK tax authorities. For further information please visit UK published legislation: https://www.legislation.gov.uk/ukpga/2020/26/schedule/3/enacted

For items with a consignment value above GBP 135, Wish will collect VAT and custom duties from customers and pass the VAT and custom duties on to the freight forwarder appointed by Wish or the merchant. The freight forwarder pays the collected amounts due at the UK border on behalf of the customer.


Jurisdictions with other online marketplace rules

Germany

Germany has introduced new rules regarding Online Marketplaces with effect as of March 1, 2019. According to these rules, Wish is required to gather specific data about the merchants selling their goods into Germany.

Merchants selling goods into Germany are therefore required to inform Wish of the following: