Where Whatnot is obligated to charge tax on our commissions and fees

In certain circumstances, Whatnot is required to charge tax on Whatnot’s Commissions, Payment Processing Fee, Show Promotion and Boost fees (collectively “Whatnot Commissions and Fees”). The applicable taxes depend upon the seller’s location and, outside the U.S., a seller's tax registration status.

Sellers should review the information below, as well as work with their own tax advisor, to understand their responsibilities, if any, for the collection and remittance of taxes on Whatnot’s Commissions and Fees.

U.S. sellers

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

Sales tax exemptions for the purchase of items for resale, and other specific exemptions, do not apply to taxes charged on Whatnot Commissions and Fees.

In accordance with select state laws, Whatnot is required to collect sales tax on Whatnot Commissions and Fees in the following states:

Commission: District of Columbia, Hawaii, New Mexico, and West Virginia.

Payment Processing Fee: Connecticut (special 1% rate), Hawaii, New Mexico, Ohio, South Dakota, Texas (standard rate reduced by 20%) and West Virginia.

Show Promotion and Boost: Hawaii, New Mexico, and South Dakota.

Please keep in mind: sales tax rates vary by city and state. For more information on your specific tax rate, please visit your state tax authority website. 

Example:

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

UK, EU and Australian sellers

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 (not including Irish sellers)

Whatnot does not collect VAT/GST on Whatnot’s Commissions and Fees charged to VAT/GST registered sellers. VAT/GST registered sellers are responsible for their own VAT/GST obligations with respect to Whatnot’s Commissions and Fees. If you are VAT registered you can follow the steps here to add the number to your account.

Disclaimer

Every buyer’s and seller's situation is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Whatnot does not provide tax advice for individual situations, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice. 

Whatnot does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and should not be relied upon for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before acting on the information above.