Tax Compliance Policy

This Tax Compliance Policy explains how Fisheez PBC (“Fisheez,” “we,” “us,” or “our”) handles tax determination, collection, and remittance for transactions conducted on the Fisheez platform.

This Policy applies to all Buyers, Sellers, and service providers using the platform.

1. Overview

Fisheez operates a hybrid marketplace with two types of flows:

On-chain escrow transactions for goods and services, processed through SmartShell using stablecoins; and

Direct platform charges such as seller subscriptions, promotional tools, and certain NFT purchases, processed through a third-party payment processor.

In both cases, applicable taxes may be calculated and collected in accordance with current tax laws. However, the timing and mechanics differ depending on the payment flow.

2. Marketplace Facilitator Role

In many U.S. jurisdictions, Fisheez may be treated as a marketplace facilitator. Where required by law, Fisheez will:

Determine whether a given transaction is taxable;

Calculate the applicable sales, use, or similar taxes;

Cause those tax amounts to be routed to Fisheez-controlled tax remittance wallets or accounts only once a transaction is finalized; and

Remit collected taxes to the appropriate taxing authorities.

Buyers and Sellers acknowledge that Fisheez may have marketplace facilitator responsibilities even though Fisheez does not hold escrowed funds in its own custody.

3. Tax Determination

For each taxable transaction, the platform determines estimated tax based on, among other things:

Buyer’s shipping or service location;

Seller’s business location;

The nature and category of the product or service; and

Applicable state, local, and (where relevant) international tax rules.

The calculated tax amount is displayed as part of the order total, but in an escrow transaction it is not collected or remitted at checkout. It is simply included in the amount the Buyer locks into the SmartShell escrow contract.

4. Tax Handling for SmartShell Escrow (USDC)

This section covers all Buyer–Seller transactions for goods and services that use SmartShell.

4.1 Locking Funds Into Escrow

When a Buyer confirms a purchase:

The full order total (item price, any platform fees, and estimated tax) is transferred from the Buyer’s wallet into the SmartShell escrow contract.

Fisheez does not take possession of these funds. They are held on-chain by the contract until the transaction resolves.

4.2 While Escrow Is Active

While the escrow is open:

The entire amount, including the tax portion, is subject to:

completion of the transaction;

return flows;

disputes and appeals; and

full refund to the Buyer where applicable.

No tax is remitted to any tax authority and no funds are routed to Fisheez off-chain during this period.

4.3 Forward Resolution (Seller Paid)

When SmartShell resolves forward (e.g., Buyer completes order, dispute decided for Seller, return windows expire in Seller’s favor):

The contract executes an on-chain split according to encoded rules, which may include:

payment to the Seller;

designated platform fees to Fisheez;

charitable allocations; and

the tax portion to one or more Fisheez-controlled tax remittance wallets.

Only at this point is the tax portion treated as “collected” for purposes of remittance.

4.4 Backward Resolution (Buyer Refunded)

When SmartShell resolves backward (Buyer wins, return accepted and completed, dispute resolved for Buyer):

The entire escrowed amount, including the tax portion, is returned to the Buyer.

No tax is routed to any Fisheez tax wallet and no tax liability is created for that transaction.

4.5 After Remittance

Once tax amounts have been routed from SmartShell payouts into Fisheez tax remittance accounts and subsequently paid to tax authorities:

Any additional tax refunds (for example, due to legal requirements or corrections) will be handled in accordance with applicable law and may be processed outside of SmartShell.

These will be evaluated case-by-case and are not guaranteed beyond what law requires.

5. Tax Handling for Direct Platform Charges (Subscriptions, Ads, Certain NFTs)

Some payments on Fisheez do not use SmartShell, including but not limited to:

Seller subscription plans and tool bundles;

Advertising or promotional services sold by Fisheez;

Certain NFT or digital membership purchases paid via traditional payment methods.

For these transactions:

A third-party payment processor charges the Buyer’s selected payment method.

Applicable taxes (if any) are calculated at the time of charge and included in the total price.

The processor settles funds to Fisheez in accordance with its own merchant agreement, and Fisheez is responsible for remitting the tax portion to the appropriate authority where required.

These charges are not part of the SmartShell escrow system and are not subject to the return/dispute logic that applies to Buyer–Seller escrows, except as required by consumer law or Fisheez’s own refund policies.

6. Seller Responsibilities

Sellers are responsible for:

Providing accurate business location information;

Correctly categorizing the products and services they list;

Complying with their own income and business tax obligations; and

Maintaining records of sales for their own reporting requirements.

Where marketplace facilitator laws apply, Fisheez may handle sales tax collection and remittance, but this does not relieve Sellers of all tax obligations (e.g., income tax, self-employment tax).

7. Buyer Responsibilities

Buyers are responsible for:

Providing correct shipping and location data;

Paying any displayed taxes included in the order total; and

Reporting and paying any additional use tax or similar obligations not collected by Fisheez, if required by their jurisdiction.

8. International Taxes

For cross-border transactions:

Fisheez may calculate and charge VAT, GST, or other consumption taxes where required by law.

Buyers and Sellers are responsible for understanding and complying with customs duties, import taxes, and other international obligations.

Unless explicitly stated, Fisheez does not collect or remit customs duties on behalf of users.

9. Non-Custodial Tax Position

For SmartShell escrow transactions:

Fisheez does not accept or hold user funds in its own accounts while a transaction is pending.

All funds, including the estimated tax portion, remain inside the SmartShell contract until final resolution.

Tax routing occurs only as part of a final on-chain settlement, and only to the extent required for Fisheez to meet marketplace facilitator obligations.

Nothing in this Policy should be interpreted as Fisheez operating as a money transmitter or financial custodian with respect to escrowed funds.

10. Changes to This Policy

Tax laws and regulations—especially regarding digital assets and online marketplaces—change frequently. Fisheez may update this Policy as needed to maintain compliance. Updated versions will be posted on the Platform with a revised “Last Updated” date.

Continued use of the Platform after any update constitutes acceptance of the updated Policy.

11. Contact

Questions regarding this Tax Compliance Policy may be directed to:

Fisheez PBC – Tax & Compliance
support@fisheez.com