Navigating Wisconsin’s sales tax guidelines
Every state determines the directives that dictate when a business or seller must collect and remit sales tax. Businesses must adhere to the tax obligations in Wisconsin to ensure they remain compliant. Does your business need to have a sales permit and collect sales tax and remit payments to Wisconsin? TaxJar’s sales tax guide explains the guidelines in the state, providing businesses with everything they need to know about nexus and other details about sales tax laws in Wisconsin. Use the guide to learn more about your sales tax obligations in the state, and estimate potential sales tax liabilities with the sales tax calculator.
Do you need to collect sales tax in Wisconsin?
Businesses must collect sales tax from customers in Wisconsin and remit payment to the state if they have either physical or economic nexus. Businesses have economic nexus if they have a tangible presence or activity in Wisconsin. Businesses or online sellers have economic nexus when they meet either the threshold for total revenue or total number of transactions.
Do you have physical nexus in Wisconsin?
Wisconsin considers a seller to have physical nexus if they meet any of these conditions in the state:
- An office or place of business
- An employee present in the state
- Goods in a warehouse
- Ownership of real or personal property
Do you have economic nexus in Wisconsin?
Effective February 2021, Wisconsin considers vendors who make more than $100,000 in sales in the state in the previous or current calendar year to have economic nexus. (This is an update of Wisconsin’s original economic nexus laws, which went into effect October 1, 2018.) These vendors must collect sales tax from buyers in the state.
Is what you’re selling taxable?
Services in Wisconsin are generally not taxable, with some exceptions. However, if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products. The Wisconsin Department of Revenue offers a list of all taxable services.
Tangible products are taxable in Wisconsin, with a few exceptions. These include burial caskets, certain groceries, prescription medicine and medical devices, printed publications, modular or manufactured homes, manufacturing equipment, and some agricultural items.
Is SaaS taxable in Wisconsin?
SaaS is non-taxable in Wisconsin.
What is use tax?
If you make a purchase and Wisconsin sales tax is not charged on that taxable item, use tax must be paid. Businesses can pay use tax on their Wisconsin sales and use tax return, or they can report and pay use tax quarterly on a Wisconsin Form UT-5 (Consumer Use Tax Return).
A sales and use tax exemption certificate, which is signed by purchasers and given to sellers to verify that a transaction is exempt, is available through the Wisconsin Department of Revenue.
How to get a sales tax permit in Wisconsin
To register for a sales tax permit in Wisconsin, you have two options. Businesses can register online at the Wisconsin Business Tax Registration website.
They can also complete Form BTR-101, the Application for Wisconsin Business Tax Registration.
Or visit TaxJar’s registration page to request for TaxJar to manage your Wisconsin registration.
Business who prefer filing through the mail should send their application to:
Wisconsin Department of Revenue
PO Box 8902
Madison, WI 53708-8902
(608)266-2776
FAX: (608) 264-6884
Businesses need the following information to register for a sales tax permit in Wisconsin:
- Reason for your application
- Basic business information
- Your business type (sole proprietorship, corporation, etc.)
- The type of business you run (dry cleaner, limousine, food and beverage, etc.)
- The start date you’ll begin collecting sales tax
- Other business owners
Wisconsin charges a $20 fee to register, but this fee only applies to first-time applicants. In addition, other business registration fees may apply.
Use the Streamlined Sales Tax™ Registration System (SSTRS)
| Wisconsin is a Streamlined Sales Tax™ Member state. The Streamlined Sales Tax™ Registration System offers a centralized location for businesses (and online sellers) to register for sales tax permits in member states. The system was designed to simplify the sales tax permit process for businesses that have economic nexus in numerous states.
Use the SSTRS to apply for a sales tax permit in any member state. For additional guidance, contract with a Certified Service Provider™ (CSP™ ) to provide sales tax concierge services and sales tax assistance in any state in which your business is registered via the SSTRS. |
Collecting sales tax in Wisconsin
Wisconsin is a destination-based sales tax state. If your business is based in Wisconsin, then you must collect sales tax at the tax rate where the item is being delivered. This is the same whether your business is located in Wisconsin or if you are an out-of-state seller. It is also the same if you will use Amazon FBA there. Use TaxJar’s Sales Tax Calculator to understand the local sales tax rates.
Should you collect sales tax on shipping charges in Wisconsin?
In Wisconsin, if the item that you are shipping is taxable and you charge your buyer shipping, then those shipping charges are taxable. If you have both taxable and non-taxable items shipping together, you will need to determine the shipping charges for only the taxable items.
When are Wisconsin sales tax returns due?
When you file and pay Wisconsin sales tax depends on your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Wisconsin?
States assign retailers a filing frequency when you register for your sales tax permit. In most states, how often retailers file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Wisconsin, you will be required to file and remit sales tax either monthly, quarterly, or annually.
Wisconsin sales tax returns are almost always due the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Important note: Some high-volume Wisconsin sales tax filers will be assigned “prepayments” that are due the 20th of the month following the taxable period (as opposed to the last day of the month following the taxable period).
Filing sales tax in Wisconsin
When it’s time to file sales tax in Wisconsin, take these three simple steps:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to calculate how much sales tax you owe in Wisconsin
Calculating how much sales tax you should remit to the state of Wisconsin is easy with TaxJar’s Wisconsin sales tax report.
Connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Wisconsin sales tax return will be waiting for you in TaxJar.
How to file and pay sales tax in Wisconsin
You have a few options for filing and paying your Wisconsin sales tax:
- File online at the Wisconsin Department of Revenue. You can remit your payment through their online system.
- File by mail – Fill out Wisconsin Form ST-12 and mail it to the Wisconsin Department of Revenue (along with your payment)
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations, or filling out complex sales tax returns.
