Tax on Whatnot Sales Tax on Whatnot Sales

Tax on Whatnot Sales

Brooke Brooke

For all payouts on Whatnot that are processed through Paypal, please refer directly to Paypal for additional information. For sellers that are approved for ACH Payouts through DWOLLA. Paypal and Dwolla will provide the appropriate 1099 and information at year-end. In 2021, the requirement for 1099s to be sent was $20,000 in Payments AND 200 payments.

 

Sales Tax Exemption

Updates as of April 12, 2022: We are now supporting sales tax exemption on Whatnot for eligible users!

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.

Whatnot Address: 578 Washington Boulevard #1019, Marina del Rey, CA 90292

If you have obtained a tax exempt certificate, submit an application at https://whatnotapp.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.

Buyer responsibility

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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