One of the most well-known online retailers, Amazon, has long provided tax-free shopping to its customers. That has changed recently, though, as Amazon has begun implementing sales tax in an increasing number of states. But in which states still does Amazon not charge sales tax?
Currently, Amazon only collects sales tax in five states: Alaska, Delaware, Montana, New Hampshire, and Oregon. Since there is no statewide sales tax in these states, Amazon is not required by law to collect sales tax from customers who make purchases there. It is crucial to remember that municipal taxes can still be applicable in some locations of these states.
Why then is Amazon beginning to impose sales tax in an increasing number of states? It is the law, and that is the easy response. More and more states now have laws enforcing the collection of sales tax from customers making purchases within their state from online merchants like Amazon. This is due to the rise in popularity of online shopping and the desire of states to find ways to profit from these purchases.
You will require a tax-exempt number if you are a Wisconsin-based company or organization intending to make tax-exempt purchases on Amazon. You must submit an application for a Wisconsin tax exempt certificate to the Wisconsin Department of Revenue in order to receive a tax-exempt number in Wisconsin. You can avoid paying sales tax on your purchases by giving Amazon your tax-exempt number once you’ve got it.
You won’t be charged sales tax when buying groceries and food on Amazon in Wisconsin since these items are exempt from the state’s sales tax law. However, Wisconsin requires a sales tax on prepared foods like restaurant meals.
Finally, the answer is that Wisconsin has a standard deduction. In Wisconsin, the standard deduction for married couples filing jointly in 2021 is $12,930; for heads of household, it is $10,880; and for single filers and married couples filing separately, it is $6,470.
Since more states are passing legislation requiring online merchants to collect sales tax, it is crucial to remember that even if Amazon does not yet do so in five states, this could change in the future. The Wisconsin Department of Revenue can help you get a tax-exempt number if you’re a company or organization that wants to make tax-exempt purchases on Amazon. Additionally, Wisconsin does offer a standard deduction and exempts food and grocery goods from sales tax.