You are reading 1StopVAT’s Wisconsin sales tax guide. This article will explain the details of the sales tax in Wisconsin (WI). Our experts at 1StopVAT have answered frequently asked questions such as:
If you have more questions or require specific assistance, please contact the 1StopVAT team for help.
A sales tax is a tax paid to a tax authority (state or local) on the sale of specified products and services. Wisconsin enacted a comprehensive state sales tax in 1961, and the rate has subsequently climbed to 5%. In addition to the Wisconsin sales tax rate, there may be local sales taxes as well as some district taxes, each of which can range between 0% and 0.60%. Currently, the total sales tax rate in Wisconsin ranges from 5% to 5.60%, depending on the area of the sale.
As an owner of a business that sells taxable products or services, you function as an agent of the state of Wisconsin by collecting tax from customers and remitting it to the proper tax authority. The Wisconsin Department of Revenue (DOR) handles all matters involving the Wisconsin sales and use tax. You can also see their website for the official and more comprehensive information, such as terms and filing dates, among others.
The requirement to collect sales tax for Wisconsin is dependent on having a solid link with the state. This is referred to as nexus, and it determines whether the state has the legal right to oblige your company to collect, pay, and return sales tax.
Sales tax nexus can be established by remote or out-of-state sellers who have no physical presence in a Wisconsin in the following ways:
Affiliate nexus includes having someone as a solicitor of sales of goods on the retailer’s behalf in Wisconsin.
Economic nexus is created, and the remote seller must register with the state and collect and pay sales tax Wisconsin when the company generates more than $100,000 in sales of taxable or exempt items or services or completes 200 or more distinct sales transactions to Wisconsin.
Inventory in the State includes products held by Fulfillment by Amazon (FBA) merchants and kept at warehouses in Wisconsin.
Trade show nexus is established when companies make $2,000 or more in taxable sales in Wisconsin throughout a calendar year, even when taking part in one event only.
To register for a Wisconsin seller’s permit online, you will need to submit through the Wisconsin Department of Revenue(via their website) specific information regarding your business, including company and personal details. You will also be asked to provide estimates of your future sales.
It costs 20$ to register for a seller’s permit in Wisconsin. If you have trouble with registration or anything involving the sales tax rate Wisconsin, please contact the 1StopVAT team for assistance.
Before proceeding to find out how much is the sales tax in Wisconsin, we must figure out what items and services are taxed. In Wisconsin, retailers that make taxable retail sales, licenses, leases, or rents of the following items are subject to sales tax (unless an exception applies).
Tangible items such as computers, office equipment, and clothing must include the Wisconsin sales tax percentage. Services such as Electricity, Gas, Steam, and Water are considered by the State as Tangible personal property.
Prescription drugs, food, and gasoline are all exempted from Wisconsin sales tax rates. Although services usually are not taxed, some services in Wisconsin are, such as amusement park admission, telecommunication, photography, gardening, and so on.
Wisconsin law exempts some customers from paying sales tax. Government entities, some charitable groups, and businesses acquiring items for resale are examples.
Figuring out how much is the sales tax in Wisconsin is not that hard since you can easily find it online. According to the Wisconsin Department of Revenue, the Wisconsin state sales tax rate is 5%. However, Wisconsin has 100 local tax authorities (cities, towns, counties, and special districts) that collect an additional 0.481 percent local sales tax(on average) on top of the state tax. The local tax rate range is 0-1.75%.
Once you’ve registered with the Wisconsin DOR and started collecting sales tax rates Wisconsin, you become responsible for transferring tax revenue from customers to tax authorities.
Your company will be assigned a filing frequency by the Wisconsin Department of Revenue. This will either be monthly, quarterly, or yearly and is decided by the quantity or volume of your company’s sales. For example, bigger companies are required to file more frequently. The filing terms are applicable to both the sales and use tax Wisconsin.
We hope we were able to inform you of everything that you needed to know about Wisconsin’s Sales Tax and questions, such as what’s the sales tax in Wisconsin. If you have any other inquiries, please do not hesitate to contact the 1StopVAT team.