Do I Need a Resale Certificate Wisconsin? Understanding the Basics

Do I need a resale certificate Wisconsin?
Sellers are not required to accept resale certificates, however, most do. If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased. In most cases, they will be able to get a credit for the sales taxes paid later on their sales tax filing.

You might be wondering if you require a resale certificate if you are in the Wisconsin industry of reselling things. That is a yes or no question. A resale certificate is actually an essential document that enables you to buy products from a supplier or vendor tax-free. What Goods in Wisconsin Are Exempt from Sales Tax?

Before going any further, it’s critical to comprehend what is and is not subject to Wisconsin’s sales tax. Groceries, prescription medications, and medical equipment are just a few of the typical exemptions. Additionally, products like seeds and fertilizer that are employed in agricultural production are exempt.

Taking all of this into account, what exactly is a Wisconsin CES number?

Certain organizations can acquire products and services exempt from sales tax with the help of a Wisconsin CES number, also called a Wisconsin Certificate of Exempt Status. This covers organizations like the government, charities, and schools. A resale certificate is required if you’re a reseller as opposed to a CES number. How Can I Obtain a Certificate of Resale?

You must submit an application for a resale certificate to the Wisconsin Department of Revenue in order to get one. Simple steps can be taken to submit an application online. You must give your company details, such as your tax ID number, and an explanation of why you require a resale certificate. Your certificate, which can be used to purchase items tax-free for resale, will be given to you once your application has been granted.

How Can I Find a Wisconsin Resale Certificate?

You can check a customer’s resale certificate if you’re a vendor or supplier using the Wisconsin Department of Revenue’s website. You can check the certificate’s validity by entering the customer’s certificate number. When selling to resellers, this is a crucial step to do because you don’t want to unintentionally charge sales tax.

In conclusion, a resale certificate is an essential document if you are in the business of reselling items in Wisconsin. It guarantees that you won’t be charged sales tax on items that will be resold and enables you to buy goods from suppliers and merchants tax-free. Make sure to submit an application for a resale certificate to the Wisconsin Department of Revenue if you don’t already have one. To prevent any problems in the future, if you’re a vendor or supplier, make the essential checks on your clients’ resale certificates.

FAQ
What form should your business provide your vendors suppliers so you do not have to pay WI sales tax on the parts you purchase for use in manufacturing your products?

In order to avoid paying Wisconsin sales tax on the components you buy to utilize in the production of your products, your company should give resale certificates to your vendors and suppliers. A form known as a “resale certificate” informs a vendor or supplier that the goods being purchased will be resold to customers and are so exempt from sales tax.

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