Sales Tax on Referral Fees — Effective November 1, 2025

Overview

As of November 1, 2025, TikTok Shop will begin collecting sales tax on referral fees for sellers whose business registration address is located in West Virginia (WV) or Texas (TX).
This change is in accordance with state tax laws requiring marketplaces to collect applicable taxes on service fees charged to sellers.

Key Details

State
Tax Type
Applicable Fee
Effective Date
West Virginia (WV)Sales Tax on Referral FeeReferral FeeNov 1, 2025
Texas (TX)Sales Tax on Referral FeeReferral FeeNov 1, 2025

Impact on Sellers

  • The sales tax will automatically be added to the referral fee on your seller invoice.
  • No action is required from your side; TikTok Shop will handle tax collection and remittance in compliance with state tax laws.
  • This update only applies to sellers with a business registration address in WV or TX.

Where to View Tax Charges

You can review the breakdown of sales tax on referral fees in order breakdown:
  • Settlement Report under Seller Center → Finance → Statements.
  • Monthly Invoice under Seller Center → Finance → Invoices