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, the European Union (learn more here), Mexico (learn more here), and the United Kingdom (learn more here). Wish will then calculate and collect the 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, EU, Mexican, and UK orders will be collected from customers , and included in merchants’ next scheduled payment (subject to Payment Eligibility terms), with certain exceptions such as marketplace regions, Mexico VAT for Individual merchant account type (learn more here), and UK VAT for specific types of UK-bound orders (learn more here). Merchants may view the indirect tax amounts for applicable orders in their Order History, Order details pages, and payment invoices.
Merchants should not supply indirect tax registration information in areas where they do not believe indirect tax applies to their 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. Please consult with the tax administration or tax advisors for more details.
To activate Tax Settings, follow the step-by-step guide below.
1. On the Merchant Dashboard, navigate to Settings > Taxes 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 merchants’ Wish store. When merchants set up taxes in more countries/regions for tax collection, they 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 merchants’ current Tax Settings.
To set up taxes for more countries/regions, click “Set up taxes” to start.
Note that if merchants have not previously validated their store, they must click “Validate my store” first before they can set up Tax Settings. To learn more about store validation, please visit this Help Center article.
2. Next, select countries for tax collection. In this example, we select the United States as a country for tax collection:
Click “Continue” to move to the next step.
3. On 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 sales tax nexus in certain cities and boroughs within the state of Alaska by clicking on the pencil icon (note that Alaska does not impose a state level sales tax,, so merchants can click on the pencil icon next to Alaska to directly register for local jurisdictions):
Merchants are ultimately responsible for correctly identifying their filing obligations in the Tax Settings. Do not supply indirect tax registration information in areas where merchants do not believe indirect tax applies to their sales on Wish.com. For the purpose of this example, let’s select “Missouri”. (Note that the majority of the U.S. states are considered marketplace regions where Wish collects and remits taxes on behalf of merchants if certain requirements and thresholds are met. Merchants do not set up taxes for these marketplace regions as a result.) Click “Continue”.
4. 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 United States:
Please be sure to enter the correct TIN information. Click “Continue” to move forward.
5. The next page allows merchants to view a summary of the tax information they have entered. Click the checkbox at the bottom to indicate merchants’ agreement that they are responsible for the accuracy of any information they have provided and for the collection, reporting, and payment of all taxes to the appropriate authorities.
Merchants also agree to the Wish Merchant Tax Policy by clicking “Submit”:
6. In the popup modal that follows, click “Submit”:
7. Merchants will then be redirected back to the Tax Settings homepage, where they can view their submitted tax information, edit tax settings, or delete certain tax settings:
To receive support for issues with your Tax Settings, please email Wish at email@example.com. When reaching out, merchants should include their merchant ID and a description of the issues they encounter, and copy their Account Manager in the email as well.