With the availability of Tax Settings, merchants have the ability to indicate the jurisdictions where they have obligations to remit indirect tax (e.g. sales tax, GST and VAT) on sales in the United States, Canada, select European countries, Mexico, and the United Kingdom. Wish will then calculate and collect the estimated tax amounts and pass them on to merchants, who may then remit to the applicable tax authorities.
Specifically, the estimated indirect tax amounts for the applicable US, Canadian, European, Mexican, and UK orders will be collected from customers (as a separate sales tax line item at checkout in the US and Canada; whereas European, Mexican, and UK orders will show GST/VAT inclusive pricing), and included in the merchant’s next scheduled payment (subject to Payment Eligibility terms), with certain exceptions such as marketplace regions, Mexico VAT for Individual merchant account type, and UK VAT for specific types of UK-bound orders (learn more here). Merchants may view the estimated indirect tax amounts for applicable orders in their Order History, Order details pages, and payment invoices.
Please do not supply indirect tax registration information in areas where you do not believe indirect tax applies to your sales on Wish.com. Merchants are ultimately responsible for correctly identifying their filing obligations in the Tax Settings and ensuring their sales tax/VAT compliance obligations are met and returns are submitted accurately.
To activate Tax Settings, follow the step-by-step guide below.
1. On the Merchant Dashboard, navigate to Account > Tax Settings on Merchant Dashboard. Click “Set up taxes” to start:
The Tax Settings homepage outlines important information of a list of countries/regions supported by this functionality for tax collection and reporting of your Wish store. When you set up taxes in more countries/regions for tax collection, you will see them listed on this page as well. The list also provides information on standard tax rates applicable to the countries/regions set up, tax liability (Wish remits, merchant remits, Determined at fulfillment, or None), and the status of the Tax Settings for the specific country/region listed. This information provides merchants with an overview of your current Tax Settings.
To set up taxes for more countries/regions, click “Set up taxes” to start.
Note that if you have not previously validated your store, you must click “Validate my store” first before you can set up Tax Settings. To learn more about how to validate your store, please visit this FAQ article.
2. Next, select your country of domicile (i.e. place of business), which refers to a place where a company’s principal affairs of business are maintained. In this example, we select the United States from the drop-down menu as our country of domicile. Click “Continue” when done.
3. Then merchants are able to select their countries for tax collection. In this example, we select the United States and Austria as countries for tax collection:
Click “Continue” to move to the next step.
4. Because one or more European countries (in this example, Austria) have been selected as countries for tax collection, merchants will then be asked to provide default ship from location for Europe-bound orders for both Standard orders as well as Wish Express orders. The selection may be used for calculating GST/VAT at the time of customer purchase. Click “Continue” to move to the next step. *Note: If this information is not updated in the merchant dashboard, merchants may not be shown the estimated tax amounts for EU or the amounts shown may be incorrect.*
5. In the next page, merchants are asked to select the jurisdictions where they have indirect tax (e.g. sales tax, GST and VAT) obligations.
Note that some areas may have subjurisdiction-level settings for merchants to select. For example, in Alaska, merchants have the ability to edit Nexus in certain counties, cities, and districts within the state of Alaska by clicking on the pencil icon (note that for Alaska, there is no state-wide tax, so merchants can click on the pencil icon next to Alaska to directly register for state-administered jurisdictions):
Similarly for Louisiana, merchants will need to enroll for the state-level tax first before registering for state-administered jurisdictions (select Louisiana first before clicking the pencil icon that appears after):
Merchants are ultimately responsible for correctly identifying their filing obligations in the Tax Settings. Do not supply indirect tax registration information in areas where you do not believe indirect tax applies to your sales on Wish.com. For the purpose of this example, let’s select “California”. Click “Continue”.
6. Merchants then fill in their Tax Identification Number (TIN) for each region or state selected. In this example, merchants need to input the Tax Identification Number (TIN) for both California, United States and Tax IDs for Austria:
Please be sure to enter the correct TIN information. Click “Continue” to move forward.
7. The next page allows you to view a summary of the tax information you’ve entered. Click the checkbox at the bottom to indicate your agreement that you are responsible for the accuracy of any information you’ve provided and for the collection, reporting, and payment of all taxes to the appropriate authorities. You also agree to the Wish Merchant Tax Policy by clicking “Submit”:
8. In the popup modal that follows, click “Submit”:
9. You’re then redirected back to the Tax settings homepage, where you can view your submitted tax information, edit tax settings, or delete certain tax settings:
Once the status of your tax setting changes from “Submitted” to “Saved”, Wish has saved your tax information going forward, and will provide tax reporting for your applicable orders at a future date.
To receive support for issues with your Tax Settings, please email Wish at firstname.lastname@example.org. When you reach out, please include your merchant ID and a description of the issues you encounter; be sure to copy your Account Manager in your email as well, so we can review and address your question in a timely manner.