Any business that sells goods or taxable services within the state of Wisconsin to customers located in Wisconsin is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Wisconsin must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in the state of Wisconsin?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a Corporate presence within the state of Wisconsin
- You sell or ship products to a buyer in Wisconsin
- You have a distribution location such as a storage area or warehouse space with goods
- You have ownership of real or personal property
- You have employees physically present in Wisconsin (including independent contractors, sales persons, representatives, or agents)
- Your business has economic presence (businesses who make over $100,000 in sales or 200 transactions in the prior or current year)
- Your business has taxable services in the state of Wisconsin
What constitutes taxable services in the state of Wisconsin?
The majority of service businesses are not taxable in Wisconsin. The exceptions would be if your business fabricates a good or product. Additionally, communication services, photography services, laundry and dry-cleaning services, bale tv services, and parking services are taxable
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Wisconsin?
As a wholesale company conducting business in the state of Wisconsin, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable if the item being sold is taxable. However, if taxable and nontaxable items are being shipped together, you must pay sales tax for shipping on the percentage of the sale that’s taxable.
Is there sales tax on drop shipments in the state of Wisconsin?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Wisconsin are required to have sales tax added
Are there any exemptions to taxable items sold?
Groceries and food from vending machines, medical supplies, medical devices, raw materials and machinery, newspapers and magazines, burial caskets, manufactured homes, and printed publications are tax exempt
Register for a Wisconsin sales/use tax number
Wisconsin state, county, city, & municipal tax rate table