Product fees

Effective January 1, the State of California will require Walmart.com to collect and remit other taxes and fees for products such as tires, lead-acid batteries, and electronic waste–plus any applicable product taxes and fees.

To help you track these fees, we’ve added a new FeeWithheldFlag column in the Payment Report so you can easily identify if a fee was included in the net payable amount of a sale. Please note, other states are expected to follow the same requirements in the coming months.

FeeWithheldFlag Column Legend: 

• Blank: sale was not subject to a fee.
• Y: sale was subject to a fee, and we withheld the fee from your payment.
• N: sale was subject to a fee, and we included the fee in the amount paid to you.

Payment fees

As a reminder, in accordance with our Seller Promise, our default payment method is “direct deposit” to your bank account with no fees to you, ensuring that you receive 100% of your funds.

Requirements for no fee payments:

1. Enrollment with your payment processor must be initiated from your Seller Center account.
2. Payment must be delivered to a U.S. or Canadian bank account that supports direct deposit (ACH).

If you are paying fees today and wish to change to “no fees payment delivery”, please contact your payment service provider (Payoneer or Hyperwallet). You will need to have your business bank account details available when you contact them.

Complying with IRS mandates

IRS mandates require Walmart to ensure that your tax profile on file with us is accurate. To comply with this mandate, we are verifying seller tax IDs and legal names we have on file with the IRS, and we may contact you if your information cannot be successfully verified.

How do I verify my tax profile is correct?

1. Login to Seller Center
2. Select “Tax Profile” under “Settings” on the top menu bar
3. Verify that your:
   • Legal name is in the Name field
   • Tax ID (TIN)
   • Tax classification (W-9, W8-ECI, W-8BEN) are correct.
4. If the information shown is correct, please open a Partner Support case for further assistance
5. If you made changes to your tax profile, you will be notified after the information has been verified

What happens if I don’t correct my information?

If after 30 days, you have not updated your information or opened a Partner Support case, your payments may be suspended until we can verify your tax information with the IRS. Further actions may include, but are not limited to:

1. Collecting backup withholding on gross payments at the rate of 24%, as directed by the IRS
2. An IRS-imposed $280 penalty for incorrect information if updates are not made before your 1099-K form is filed for the calendar year (penalty assessed each year information remains incorrect)
3. Additional solicitations from Walmart to obtain correct information

Please refer to the IRS for more detailed information.

1099-K reporting

As a reminder, the information listed on the 1099-K form you will receive this month should have been verified and corrected in Seller Center by December 31, 2021. 1099-K forms will not be amended or re-issued if your information was not updated, and you may be assessed an IRS penalty of $280 as a result.

Carefully review the key information and important dates below to ensure you are not penalized.

2021 tax year reporting thresholds:

Eligibility and Important Notes:

1. Only sellers with a W-9 tax classification are eligible to receive a 1099-K form
2. Reporting thresholds are applied to orders shipped between January 1, 2021 and December 31, 2021
3. State given reporting thresholds take precedence of IRS thresholds
4. Refunds are not considered: if you shipped 201 orders and 10 were refunded, you will receive a 1099-K
5. Cancelled sales, even if shipped are not counted towards thresholds eligibility
6. If you do not meet filing criteria, you will not be issued a 1099-K and will instead need to self-report
7. Follow IRS guidelines
8. Maintaining the accuracy of tax information used for reporting is your responsibility
9. Amended reports will not be issued if your tax information is incorrect by the close of 2021
10. 1099-K sales reports will be issued to you via your Payment processor (Payoneer or Hyperwallet) to your primary contact email
11. Failure to maintain accurate tax information as part of your 1099-K filing may result in IRS penalties of up to $280 (IRS Pub. 1586)

Important dates:

Tax Profile form

We recently made several important enhancements to the Tax Profile form in Seller Center and added the following enhancements:

• • Support for W-8BEN sellers (primarily from China and Hong Kong)
  • Ability to enter the company name and address in your country of incorporation
  • Ability to provide a reason for and the effective date of your tax profile change (this impacts your 1099-K)
  • Ability to upload supporting documentation to streamline the review/approval process
  • Verification of your tax profile with the IRS

Sellers can expect the following newenhancements this month:

• Tax & Payment contact information:
  • First & last names
  • Phone
  • Email addresses (primary & alternate)

This contact information will be used if we need to contact you regarding verifying your tax information, changes to payments, and to send you 1099-K forms.

Summary of features by tax classification:

Legend: 

R: required O: optional n/a: not allowed