Wisconsin Sales Tax: Online Sales Tax and Other Important Information

One of the numerous states in the US that levies a sales tax on products and services is Wisconsin. A tax known as a sales tax is levied on retail purchases, leases of tangible personal property, and certain services. On the sale of certain services and tangible personal property, the state levies a 5% sales tax. Local governments may, however, levy additional sales taxes to raise the overall sales tax rate to more than 5%.

Whether Wisconsin has an internet sales tax is one of the most commonly asked topics about the state’s sales tax. Yes, it is the answer. Remote vendors are required by the Wisconsin Department of Revenue to gather and send sales tax on taxable transactions done with residents of Wisconsin. A company or person that doesn’t have a physical location in Wisconsin but sells to customers there is known as a remote seller. Based on the US Supreme Court ruling in South Dakota v. Wayfair, Inc. (2018), which permits states to mandate that remote retailers collect and pay sales tax, this requirement.

Whether Wisconsin’s sales tax is destination-based is another relevant query. Yes, it is the answer. Because Wisconsin is a destination-based state, the location of the client, not the vendor, determines the sales tax rate. This implies that you must impose several sales tax rates if you sell items or services to clients in various Wisconsin cities.

You might be wondering how to pay your sales tax online if you’re a seller in Wisconsin. Businesses can submit and pay their sales tax returns online using the My Tax Account service provided by the Wisconsin Department of Revenue. You must create an account, have your Wisconsin seller’s permit number, federal employment identification number (FEIN), or social security number (SSN), on hand, and register for My Tax Account before you can use it.

Finally, some vendors may ponder if they ought to add Wisconsin sales tax to their shipping costs. Both yes and no, is the answer. Sales tax does not apply to delivery costs that are individually mentioned and reasonable. However, shipping costs could be liable to sales tax if they are not specified separately or are excessively expensive.

Finally, Wisconsin has an online sales tax that mandates that distant vendors collect and pay sales tax on taxable sales made to Wisconsin clients. Additionally, the state uses a destination-based system, which means that the location of the client, not the supplier, determines the sales tax rate. The My Tax Account system allows sellers to pay their sales taxes online, but they should be aware of the regulations governing the application of sales tax to shipping costs.