With the availability of Tax Settings, Merchants now 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, and Mexico.
- Starting May 14, 2019, Wish begins to display and provide merchants with the payment of the estimated indirect tax remittance amounts for their configured US jurisdictions in Tax Settings, with the exception of tax authorities where Wish is registered as a Marketplace and is collecting the appropriate indirect tax.
- Effective August 28, 2019, Wish will begin displaying and providing merchants with the payment of the estimated indirect tax remittance amounts for most of their configured European countries in Tax Settings.
- Effective October 8, 2019, Wish will begin displaying and providing merchants with the payment of the estimated indirect tax remittance amounts for their configured Canadian jurisdictions in Tax Settings.
- Effective early October 2020 (finalized date will be promptly announced to merchants), Wish will begin collecting Mexico VAT on the sale (price displayed to customers includes 16% VAT) of products that the merchants have offered to customers in Mexico whenever VAT is applicable (if the orders are shipped from Mexico), per new tax reform legislation introduced by the Mexican government. Merchants should provide their valid Registro Federal de Contribuyentes identification number (RFC ID) via Tax Settings in order for Wish to determine the correct amount of VAT to collect on from the sales. See this FAQ article for more details.
The estimated indirect tax remittance amounts for applicable US, Canadian, and European, and Mexican orders will be collected from customers (as a separate sales tax line item at checkout in the US and Canada; whereas European and Mexican 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 and Mexico VAT for Individual merchant account type. Merchants may view the estimated indirect tax remittance 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 now” to start:
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.