Paypal and Stripe will issue the appropriate 1099 and tax information directly to sellers at year-end. Sellers who made more than $20,000 in payments from over 200 transactions must report their payments in their 2022 tax records.
Note: The IRS has announced that the required declared payment threshold for sellers will change from $20,000 to $600. However, on December 23, 2022, the IRS announced they would use the 2022 tax year as a transition year for the threshold change. For the 2022 tax year, the previous thresholds will still apply ($20,000 in payments from over 200 transactions).
Sales Tax Exemption
Depending on your local government, you may be required to pay sales tax on your Whatnot purchases. When you buy an item on Whatnot, the required taxes may vary depending on the item’s price, composition, and your location.
Within the United States, some states allow Buyers to receive sales tax exemptions which remove the sales tax burden from each purchase. To qualify for an exemption, you must register your business with your local government stating Whatnot is a supplier of goods for your business that you intend to resell. Your business will be responsible for the sales tax burden on your future sale, but you will be exempt from paying tax on your purchase from Whatnot.
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If you have obtained a tax exempt certificate, submit an application at https://whatnot.typeform.com/tax-exempt where we will collect the following information:
- A government issued photo ID
- Proof of your tax exemption (form, card, or certificate)
- username and email address associated with your Whatnot account
Please note: You will only receive sales tax exemption after your application for Sales Tax Exempt status is received and approved by Whatnot. Once approved, we will contact you via email. We cannot retroactively apply sales tax exemption to any of your purchases on Whatnot that happen prior to approval. Approval will be valid for one year, at which point you will need to resubmit for approval.
If neither Whatnot nor the seller is required to collect sales tax on your purchase, you may be required to pay taxes directly to the state or your local tax authority. For more information, we suggest consulting with your tax advisor.
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