Wish adds VAT for applicable United Kingdom (UK)-bound orders on top of the customer-paid product price and shipping price. Therefore, please ensure that the product price and shipping price you provide do not already include the VAT amount.
The below list contains a detailed overview of UK VAT:
- For orders shipping to the UK from outside of the UK:
- If the customer-paid price of the consignment is less than or equal to £135 (excluding all other customer payments such as shipping, insurance, and taxes), Wish calculates, collects, and remits VAT directly to the UK tax authorities.
- If the customer-paid price of the consignment is greater than £135 (excluding all other customer payments such as shipping, insurance, and taxes), the VAT amount is included in the purchase price. Wish remits this amount to merchants and requires merchants to forward the VAT amount to the freight forwarder designated by Wish or the merchants. The freight forwarder then pays the VAT amount due at the border on behalf of the customers.
- For orders shipping to the UK from within the UK, Wish adds and collects VAT on all orders. For UK domiciled merchants shipping within the UK who have set up Tax Settings and have a UK VAT obligation,* the collected VAT amounts are remitted to the merchants to remit to the UK tax authorities. For non-UK domiciled merchants shipping orders within the UK, Wish calculates, collects, and remits VAT directly to the UK tax authorities.
- For UK (and EU) merchants shipping refurbished electronics within the UK (or EU), please follow the "Guide to Selling Refurbished Electronics" for merchant responsibility regarding VAT margin schemes and information on how to list refurbished electronics on Wish’s platform.
- IMPORTANT: If selling only refurbished goods, please check the box “No VAT obligation” on the Tax Settings page, which informs Wish that the merchant takes responsibility over any VAT due when selling refurbished goods.
*UK domiciled merchants setting up Tax Settings for the UK must indicate if they do or do not have a VAT obligation in the UK. If UK domiciled merchants do have a VAT obligation in the UK, they must provide their VAT number regardless of store account type (see below for how). If UK domiciled merchants do not have a VAT obligation in the UK, they must provide other information (see below for more details).
UK domiciled merchants shipping within the UK are strongly encouraged to set up UK Tax Settings to comply with the UK VAT changes and ensure accurate VAT collection and remittance. UK Tax Settings are available to set up via our Tax Settings page in the Merchant Dashboard. Failure to properly set up UK Tax Settings will result in Wish adding VAT to the merchant’s UK-bound orders and remitting directly to the UK tax authorities on behalf of the merchant for all UK-bound orders. Please note that once VAT is remitted by Wish to the UK tax authorities, there is no option for a refund from Wish. Merchants are responsible for any VAT due in the UK.
Tax Settings in Merchant Dashboard
Note: If you have not previously verified your store, you must do so before you apply tax settings.
Set Your UK Taxes
1. Navigate to the Merchant Dashboard > Settings > Taxes; click “Set up taxes" (located in the top right).
- By default, the Country column lists the UK as “United Kingdom (Great Britain) - MPF," and the Tax Liability column displays “Determined at fulfillment." Wish is a Marketplace Facilitator (MPF) in the UK, which means that unless you set tax settings as a UK domiciled merchant, Wish calculates, collects, and remits VAT directly to the UK tax authorities on your behalf for applicable UK-bound orders (including UK domestic orders -- orders shipping from to the UK).
- Once you successfully set your tax settings for domestic UK orders (shipping to/from the UK), Wish calculates and collects VAT on your behalf, but remits the amount to you so that you can remit it to the UK tax authorities.
2. Select country for tax collection ("United Kingdom (Great Britain)") and click “Continue."
3. Enter your UK tax identification details. You must indicate if you do or do not have a UK VAT obligation.
- If you do have a VAT obligation, then provide your VAT number (regardless of store account type).
- If you do not have a VAT obligation, you must either:
- Provide your Company Registration Number (CRN) if your store account type is “Company,” or
- Provide your Tax Identification Number (TIN) or your National Identification Number (NIN), if your store account type is “Individual”
4. Click "Continue."
5. View the summary of tax information you entered; if the information is accurate and you agree to the terms listed as well as those in the Wish Merchant Tax Policy, check the box at the bottom of the page and click to "Submit."
6. Click "Confirm" to complete set up.
Navigate the Tax Settings Homepage
On the Tax Settings homepage, a “Pending” status indicates you successfully submitted your tax information and your tax settings are pending review by Wish. (The review process may take up to two business days.)
"Active" status means your tax information is verified and in effect.
Change/View Your Tax Information
To make changes to your tax information or default ship-from location, click the pencil icon in the Action column.
To “Cancel tax setup” or “View tax setup details," click the vertical ellipses (three dots on the far right).
- Selecting “Cancel tax setup” results in Wish calculating, collecting, and remitting VAT directly to the UK tax authorities on your behalf for all domestic UK orders (orders shipping to and from the UK).
- Selecting “View tax setup details" expands the row to display your UK tax information. You can also view your tax information by clicking the arrow to the left of the “United Kingdom (Great Britain) - MPF” row (see screenshot above).