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Wisconsin Sales Tax 2022 for Businesses: A Complete Guide

“The Wisconsin sales tax for businesses in 2022 is 5%”

How Much is the Wisconsin Sales Tax for Businesses?

Wisconsin collects a 5% state sales tax and permits local governments to collect a 0.6 percent local choice sales tax. There are 100 local tax jurisdictions in the state, collecting an average of 0.481 percent in local taxes. The highest sales tax rate in Wisconsin is 6.75 percent in the cities of Baraboo, Wisconsin Dells, and Lake Delton when combined with the state sales tax.

Wisconsin Sales Tax

Threshold Limit

5%

$100,000 economic sales threshold

The question arises: do you need to collect Wisconsin sales tax? Let’s see.

Do You Need to Collect Wisconsin Sales Tax for Your Ecommerce Store?

If you sell tangible goods or certain services, you may need to collect and remit sales tax to the Wisconsin Department of Revenue. The department collects the sales tax at the moment of sale and varies by area, county, and city in which you are working.

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Food, pharmaceuticals, clothing, and gas are not taxed in most states because they are necessities. Therefore, if you are selling any of the mentioned items, then you need to collect Wisconsin sales tax in 2022. Here, we have compiled the details of all the goods and services that are taxable under the Wisconsin sales tax 2022.

Read More: Minnesota Sales Tax 2022 For Businesses: A Complete Guide

What Types of Goods and Services are Taxable?

Retailers in Wisconsin who make taxable retail sales, licenses, leases, or rents of the following products (unless an exemption applies) are subject to sales tax:

  • A tangible personal property 
  • Coins, and stamps from the United States that are sold, licensed, leased, rented, or traded for more than their face value as collector’s items.
  • If the lessor has the right to remove the leased property upon breach or termination of the lease agreement, it refers to tangible personal property fastened to real property.

Exception: The lessor’s charge for the lease of tangible personal property affixed to real property is not taxable if the lessor of the leased property is also the lessor of the real property.

  • Some digital items

In addition, unless the service provider or the customer is exempt from tax on that transaction, certain services sold, licensed, performed, or furnished at retail in Wisconsin are subject to Wisconsin sales or use tax.

Tangible Personal Property

Tangible personal property refers to personal property that you can see, weigh, measure, feel, touch, or perceive in any other way. Here are several examples:

  • Clothing
  • Computers
  • Office equipment
  • Electricity
  • Gas
  • Steam
  • Water
  • Regardless matter how you get it, prewritten computer software (i.e., physical media or download)

Taxable Services

Wisconsin sales and use tax applies only to specific services sold, performed, or given in the state. The following services are taxable:

  • Admission to amusement, sporting, entertainment, or recreational venues or events, as well as access entitlements.
  • Amusement devises 
  • Boat storage and docking
  • Cable television services
  • Contracts for the provision of services in the future
  • Internet access are available (not taxable beginning July 1, 2020)
  • Services for landscaping and lawn care
  • Laundry and dry cleaning services are available.
  • Parking services for automobiles and planes
  • Services in photography
  • Producing, constructing, and printing are all things that we do.
  • Repairing and maintaining the tangible personal property, things, property, and goods (Part 10.B.9 in Publication 201)
  • For a period of less than one month, rooms or accommodation are available.
  • Message services for telecommunications
  • Telecommunications and associated services, including prepaid calling services
  • Motor vehicle towing, and hauling

Also, in some places, the delivery charges are taxable as well. Want to know about it? Let’s see:

Are Deliveries Taxable?

When a retailer offers taxable goods or services and charges the buyer for delivery, the total charge, including the delivery charge, is taxable. This is true whether the seller’s vehicle makes the delivery, a common or contract carrier does it, or the US Postal Service does it.

Exceptions:

  • The cost of direct mail does not include the cost of delivery, which is provided separately.
  • The Wisconsin buyer pays transportation or delivery charges to a carrier that is not affiliated with the vendor.

Collecting Sales Tax

You’ll need to figure out how much sales tax to charge different clients after you receive your seller’s permit and start your business. It is critical for business owners to collect the correct rate of sales tax in order to prevent fines and the possibility of costly audits.

You must account for the following types of purchases when calculating sales tax:

  • Store Sales-  Calculating sales tax for traditional business owners selling goods or services on-site is simple: all sales are taxed at the rate determined by the store’s location.
  • In-state Sales-  Wisconsin’s sales tax regime is known as destination-based sales tax. This means that long-distance sales in Wisconsin are taxed based on the buyer’s address. This regulation applies to sales taxes collected by the state, county, and city.

Filing Wisconsin Sales Tax

Businesses in Wisconsin need to file sales tax forms and make sales tax payments online.

How often should you file?

  • Annual filing- If your firm receives less than $900.00 in sales tax every month, you should file your taxes once a year.
  • Quarterly filing- If your company receives between $900.01 and $7200.00 in sales tax per month, you should file your returns quarterly.
  • Monthly filing- If your company collects more than $7200.00 in sales tax every month, you must file returns on a monthly basis.

Therefore, this is all you need to know about Wisconsin sales tax in 2022 for business. Lastly, the question arises: are there any deadlines to file the tax or are there penalties chargeable in case you fail to file the tax on time? Let’s see.

Is There Any Deadline to File the Tax?

With one exception, you must file the returns by the last day of the month after the end of the reporting period. Early monthly sales taxpayers must submit their returns by the 20th of the month after the reporting period’s end. You need to submit the return even if there is no tax owed for that time.

Penalty

Late filing in Wisconsin carries a $20.00 penalty, plus 5.00 percent interest per month on the total amount payable, up to a maximum of 25.00 percent.

Need Assistance With Wisconsin Sales Tax?

Team Freecashflow.io specializes in assisting online business owners to solve tax and accounting-related issues. Warner Brothers, EY, and Paramount Pictures are just a few of the multibillion-dollar firms where our colleagues have worked. You can count on us for tax and accounting assistance. Contact us now!

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