Marketplace Provider Common Questions

  1. ​​ Who is a marketplace provider?

  2. When is a marketplace provider required to collect and remit tax?

  3. Are all marketplace providers required to collect and remit tax?

  4. How do marketplace providers register to collect and remit tax in Wisconsin?

  5. Does a marketplace provider file separate sales tax returns for each marketplace seller?

  6. Is a marketplace provider required to notify marketplace sellers that it is collecting and remitting tax?

  7. Is a marketplace provider required to maintain exemption certificates?

  8. Can a marketplace provider claim a bad debt deduction on a sale facilitated on behalf of a marketplace seller?

  9. If a marketplace provider charges additional fees for facilitating a sale, what amount is subject to tax?

  10. Are marketplace providers required to collect and remit tax on sales of lodging services?

  11. Can a marketplace provider request a waiver from collecting and remitting tax?

  12. Is there an exception if the marketplace provider only has a distribution facility in Wisconsin?

  13. Can a marketplace provider be audited for sales facilitated on behalf of a marketplace seller?

  14. Can a marketplace provider that is a remote seller qualify for the small seller exception?

  15. Is the marketplace provider required to collect and remit the tax if a marketplace seller is a remote seller that qualifies for the small seller exception?

  16. Are marketplace providers required to collect county sales and use taxes?

  17. Can a marketplace provider claim the retailer's discount on taxable sales made on behalf of a marketplace seller?

  18. What is the effect on Wisconsin purchasers?

  19. Is a marketplace provider only required to collect and remit tax on sales facilitated through an online marketplace?

  20. Is a marketplace provider required to collect and remit tax on sales facilitated on behalf of a nonprofit organization that qualifies for the occasional sales exemption?

  21. Can a marketplace provider sell and ship alcohol beverages to individual Wisconsin consumers?


Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of February 25​, 2021: Subchapter III of Ch. 77, Wis. Stats.

Laws enacted and in effect after February 25, 2021, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to February 25, 2021, that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis. Stats.

FOR QUESTIONS OR COMMENTS CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email additional questions to DORSalesandUse@wisconsin.gov

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100224

February 25, 2021