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 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
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
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
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
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
Kentucky 7/1/2019 https://revenue.ky.gov/News/PublishingImages/Pages/2019-Kentucky-Tax-Changes/2019%20Kentucky%20Tax%20ChangesV3.pdf
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
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
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/
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.




2. 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.


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.


Sweden

For transactions made on Wish after June 14, 2018

PostNord Deliveries

Effective June 14, 2018, Wish has entered into an arrangement with PostNord to simplify the VAT collection process for customers in Sweden. With this arrangement, Wish will collect VAT and handling fees upon purchase by the customer and remit the VAT and handling fees to PostNord. This will be collected at point of check out, which means the Customers will not be obligated to pay the importation costs directly to PostNord upon the arrival of their goods to Sweden as the VAT will already have been collected at point of check out.

Please note that rates applied may vary based on the characterization of the product being sold and applicable corresponding VAT rate of the item(s).

Tullverket (i.e. Swedish Customs) Press Release dated January 19, 2018


Non-PostNord Deliveries

The Customer remains liable to pay VAT, customs and any applicable handling fees, to the tax authority on any goods imported which are not delivered through PostNord (i.e. through another delivery agent).


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: