Taxes on Whatnot commissions and fees

In certain circumstances, Whatnot is obligated to charge tax on its Commissions, Payment Processing Fee, Show Promotion, and Boost fees (collectively, "Whatnot Commissions and Fees"). The taxes that apply depend on the seller's location and, outside the U.S., their tax registration status.

Review the information below and consult your own tax advisor to understand your responsibilities, if any, for the collection and remittance of taxes on Whatnot’s Commissions and Fees.

In this article: 

• Sellers in the U.S.
• Sellers in Canada
• Sellers in the UK, EU, and Australia
• Sellers in Japan

Sellers in the U.S.

Taxes are deducted from U.S. sellers' order earnings and remitted to the applicable state by Whatnot.

Sales tax exemptions for purchases made for resale, and other specific exemptions, don't apply to taxes charged on Whatnot Commissions and Fees.

State laws require Whatnot to collect sales tax on Whatnot Commissions and Fees in the following states:

• Commission: District of Columbia, Hawaii, New Mexico, West Virginia
• Payment Processing Fee: Connecticut (special 1% rate), Hawaii, New Mexico, Ohio, South Dakota, Texas (standard rate reduced by 20%), West Virginia
• Show Promotion and Boost: Hawaii, New Mexico, South Dakota

Example: A seller located in Houston, Texas is charged payment processing fees on $100 of payments for the year (sales + shipping + buyer tax): 

Sellers in Canada

Whatnot is obligated to collect GST/HST/PST and QST on Platform Commissions and Payment Processing Fees charged to sellers for sales to buyers outside Canada.

Sellers in the UK, EU, and Australia

Non-VAT/GST registered sellers and all Irish sellers

Whatnot collects VAT/GST on Whatnot’s Commissions and Fees charged to non-VAT/GST registered sellers and all Irish sellers at the standard rate applicable in their country. 

VAT/GST registered sellers (excluding Irish sellers)

Whatnot doesn't collect VAT/GST on Whatnot Commissions and Fees charged to VAT/GST registered sellers. VAT/GST registered sellers are responsible for their own VAT/GST obligations related to Whatnot Commissions and Fees.

If you're VAT registered, you can add your VAT number to your account.

Sellers in Japan 

Whatnot collects JCT on Whatnot Commissions and Fees charged to sellers in Japan at the applicable rate. If you're a business, we'll issue you a tax invoice in order to allow you to obtain JCT refunds.

Disclaimer

Every seller's and buyer's tax situation is unique. The information above is provided as a general overview of applicable tax rules and should not be considered tax advice. 

Whatnot does not provide tax, legal, or accounting advice. This information is provided for informational purposes only and should not be relied upon as tax, legal, or accounting advice. Consult your own tax, legal, and accounting advisors before acting on the information above.