If you own a business in Wisconsin, you may be wondering whether you have to add sales tax to your shipping costs. In Wisconsin, you must indeed collect sales tax on all shipments. Any shipping or handling fees associated with a taxable sale, according to the Wisconsin Department of Revenue, are likewise taxed. This means that in addition to the delivery fee, you must additionally charge sales tax to your clients.
But what about purchases made outside of the state? Does Wisconsin also charge sales tax on those? It depends, is the answer. You won’t have to collect Wisconsin sales tax from clients who purchase goods or services from you outside of Wisconsin and then pick them up in Wisconsin. However, you must add Wisconsin sales tax to the total cost of the goods or services, including any shipping costs, if you ship them to an out-of-state client.
You can be eligible for a Wisconsin sales tax exemption if your organization is tax exempt. You must complete Form S-211, which is accessible on the Wisconsin Department of Revenue website, in order to obtain your FBR exemption certificate. The Department of Revenue must receive this form before it may be approved. Following approval of your exemption, you won’t be required to add sales tax to your purchases.
There is a matriculation exemption in addition to the FBR exemption certificate that some people may be eligible for. This exception applies to certain schools and universities’ students, instructors, and staff who are making purchases for their own educational needs. You will have to present your school ID and complete a form at the time of purchase in order to be eligible for this exemption.
Finally, you might want to think about obtaining a tax-exempt form if you are a business owner who routinely makes tax-exempt transactions. You can buy things that you intend to resell in your firm tax-exempt using this form, sometimes known as a resale certificate. You must complete Form S-211a, which is also available on the Wisconsin Department of Revenue website, in order to obtain a tax-exempt form.
In conclusion, Wisconsin does mandate that companies add sales tax to shipping costs. You can also be required to charge out-of-state consumers Wisconsin sales tax if you sell them goods or services. However, you might be able to avoid paying sales tax on some items if you belong to a tax-exempt organization or are eligible for the matriculation exemption. Visit the Wisconsin Department of Revenue website and adhere to the procedures therein to obtain your exemption certificate or tax-exempt form.