I visited a car dealer recently and he told me that I am required to pay sales tax on the car manufacturer's rebate. Is that correct?
Yes. Wisconsin sales tax is computed on the retailer's sales price of a new motor vehicle before subtracting the amount of a manufacturer's rebate.
How are contractors taxed on materials, labor and supplies?
The tax treatment of the work performed by contractors depends on whether the contractor is acting as a retailer or acting as a consumer.
When the contractor is acting as a consumer, no seller's permit is required. The contractor is a consumer when constructing, installing, repairing or servicing real property (e.g., installing windows, painting a house, installing a furnace). As a consumer, the contractor pays tax on materials purchased and used in performing the real property activity. The contractor's charge to the customer is not subject to tax.
When the contractor is acting as a retailer, a seller's permit is required. A contractor is a retailer when selling, installing, repairing or servicing tangible personal property (e.g., repairing a furnace) or providing a taxable service (e.g., landscaping).
A contractor must pay sales or use tax on all tools and equipment used in any construction, installation, repair, or service activity.
Sales and Use Tax Information for Contractors, contains additional information to help distinguish between real and personal property activities.
What food is taxable and what is exempt?
In general, the sale of food for human consumption is exempt, with the following exceptions as defined in sec. Tax
11.51(3), Wis. Adm. Code:
- Dietary supplements
- Prepared food
- Soft drinks
Note: Sales of alcoholic beverages are taxable. Alcoholic beverages are not considered "food" for purposes of Wisconsin sales tax laws. For further information see:
11.51(1), Wis. Adm. Code - Definition of "food and food ingredients."
11.51(2), Wis. Adm. Code - Examples of taxable and exempt "food and food ingredients."
11.87, Wis. Adm. Code - Examples relating to sales of food and food ingredients.
As a retailer, am I required to collect sales tax on sales made over the Internet and shipped to Wisconsin addresses?
Wisconsin retailers must collect sales tax on sales made over the Internet and shipped to Wisconsin addresses. Out-of-state retailers must collect sales tax on sales made over the Internet and shipped to Wisconsin addresses if they are 1) registered to collect Wisconsin sales or use tax, or 2)
engaged in business in Wisconsin (e.g., have nexus in Wisconsin).
The Internet Tax Freedom Act, originally enacted in October 1998, does not prohibit Wisconsin from taxing sales over the Internet. There is no exemption for merely making sales over the Internet, except where the sale occurs (i.e., is sourced to a location) outside of Wisconsin.
For more information see
Wisconsin Sales and Use Tax Information.
Are transportation charges subject to sales tax?
When a retailer sells taxable products or taxable services, the retailer's total charge, including its charge for delivery, is taxable. This is the case whether delivery is made by the seller's vehicle, a common or contract carrier, or the United States Postal Service.
Exception: The sales price of direct mail does not include separately stated delivery charges. For further information, see
A Wisconsin purchaser who purchases taxable goods without tax for use in Wisconsin is subject to use tax based on the "purchase price" of the goods. "Purchase price" includes transportation or delivery charges paid by the Wisconsin purchaser to the seller for the shipment of taxable goods to the purchaser. "Purchase price" does not include transportation or delivery charges paid by the Wisconsin purchaser to a carrier which is independent of the seller.
Is a seller that drop ships product to a Wisconsin location liable for Wisconsin sales tax on that sale?
A manufacturer or other seller may accept an exemption certificate claiming resale from an out-of-state purchaser, even when the manufacturer or other seller is directed to ship the product to a consumer in Wisconsin and the out-of-state purchaser does not have a Wisconsin seller's permit or Wisconsin use tax registration certificate.
If the manufacturer or other seller does not receive an exemption certificate from the out-of-state purchaser, the manufacturer or seller is liable for Wisconsin sales or use tax on its sales shipped to Wisconsin locations.
FOR MORE INFORMATION PLEASE CONTACT:
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
Updates were made to the code or formatting on this page as of January 13, 2016. This date does not reflect the effective date or any other date relating to the content of this page.