European Union Tax Settings

IMPORTANT: This article is applicable to EU domiciled merchants and non-EU domiciled merchants with an EU establishment; the term "merchant" throughout this article is defined as such.

Please note that information provided in this article does NOT constitute tax, legal, or other professional advice.

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Merchants (as defined above) may activate EU Tax Settings in the Merchant Dashboard for their EU destination countries.

Once Tax Settings is activated, Wish calculates and collects VAT for merchants’ EU-bound orders and passes the VAT amount to merchants to remit to the tax authorities. If Tax Settings is not set up, then merchants shipping orders within the EU are responsible for calculating and collecting VAT without relying on Wish’s Tax Settings support before remitting VAT to the EU tax authorities.

If merchants sell below the EU-wide distance sales threshold of €10,000 and they have not waived the distance sales threshold, VAT should be charged based on the origin country of their shipment. Tax Settings on the Wish platform cannot track this, so it is advised to not set Tax Settings. Please see the EU VAT Overview for more information on the EU-wide distance sales threshold of €10,000.) 

Tax Settings in the Merchant Dashboard

Note 1: If you have not previously verified your store, you must do so before you apply tax settings. 

Note 2: UK and EU merchants shipping/selling refurbished electronics in the UK and EU may be subject to VAT margin schemes and – depending on location – should set the following: 

• UK-domiciled merchants exclusively selling refurbished products within the UK (limited to domestic orders) must activate UK tax settings while providing consent that they have no VAT obligation. This step ensures VAT is not collected by Wish at checkout; otherwise, VAT is always collected by default.
• EU-domiciled merchants exclusively selling refurbished products within the EU (limited to domestic orders) must not activate EU tax settings. This step ensures VAT is not collected by Wish at checkout.

Set Your EU Taxes

1. Navigate to Merchant Dashboard Settings > Taxes; click "Set up taxes" (located in the top right).

• Notes: 
  • By default, the Country column lists the UK as “European Union - MPF," and the Tax Liability column displays “Wish Remits." Wish is a Marketplace Facilitator (MPF) in the EU, which means:
    • Wish calculates, collects, and remits VAT on EU-bound orders shipped from outside of the EU where the customer-paid price for the corresponding consignment is less than or equal to €150.
    • If the EU-bound order’s customer-paid price for the corresponding consignment shipped from outside of the EU is greater than €150, Wish calculates and collects VAT, but merchants are the importer of record and responsible for remitting VAT at the border.
    • Wish calculate sand collects VAT on orders shipped within the EU regardless of the price ONLY IF you (the merchant) activate Tax Settings for the EU countries to which the goods are shipped.
    • For intra-EU orders, merchants are responsible for remitting collected VAT for EU countries that are activated through Tax Settings.

• • EU countries set up in Tax Settings are displayed under the “European Union” row on the Tax Settings homepage.

2. Check the box labeled “I want Wish to collect taxes from European Union (EU) customers," and choose one of two options:

a. Provide a One Stop Shop (OSS) number for one EU country; proceed to step 2a for next steps.

b. Provide VAT numbers for all EU countries you wish to set up in Tax Settings; proceed to step 2b for next steps.

2a. Click "Yes" you have an OSS number for EU VAT purposes. Merchants with an OSS number only need to provide their OSS number for one EU country; OSS registration enables VAT collection from all EU countries at once. Select merchants’ Country of OSS registration from the dropdown, and provide the OSS number in the corresponding field; click “Continue."

 

2b. Click "No" you do not have an OSS number for EU VAT purposes. Select all EU destination countries intended for Tax Settings; click “Continue."

Provide VAT numbers for the selected EU countries; click “Continue."

3. 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."

4. Click "Confirm" to complete.

Navigate the Tax Settings Homepage

Tax Status

On the Tax Settings homepage, merchants can view the status of their setting submission.

“Pending” status indicates a successful submission and that the tax information/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.

View Tax Setting Details

To view settings details, click the arrow to the left of "European Union" to expand details. Note that merchants using VAT numbers should expand details to view Status for each individual EU countries for which they provided VAT numbers (see below).

Another way to view details is to click the vertical ellipses (three dots in the top right corner) and choose "View tax setup details."

Change Your Tax Information

To make changes to your tax information or default ship-from location, click the pencil icon in the top right corner (see screenshot above). 

To “Cancel tax setup," click the vertical ellipses (three dots to the right of the pencil icon). Canceling tax setup results in EU domiciled merchants and non-EU domiciled merchants with EU establishment shipping orders within the EU as responsible for calculating and collecting VAT without relying on Wish’s Tax Settings support before remitting VAT to the EU tax authorities. 

Export Tax Report

Find instructions to export a tax report. Note the currency of each transaction is determined by the country of OSS registration or the destination country of VAT registration (depending on how the merchant set up taxes).