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.
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.
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.
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.