NOTE: New Information About the Internet Tax Freedom Act (ITFA) is provided in the article titled "Permanent Extension of the Federal Internet Tax Freedom Act (ITFA) - What You Should Know" dated May 10, 2016.
NOTE: Previously the article below replaced the article dated November 6, 2007. See the prior article…
Sales of Internet access services are subject to Wisconsin sales or use tax if the customer's "place of primary use" is in Wisconsin.* Although the federal Internet Tax Freedom Act provides a moratorium on the taxation of Internet access services until November 1, 2014, Wisconsin is exempt from the moratorium. Therefore, Wisconsin sales and use taxes apply to the monthly fees paid by customers to access the Internet. For example, a $30 monthly fee paid for high-speed Digital Subscriber Line (DSL) service is taxable.
*"Place of primary use" means the street address representative of where the customer's use of the Internet access service primarily occurs which must be all of the following:
- The residential street address or the primary business street address of the customer.
- Within the licensed service area of the home service provider.
PURCHASES OF TANGIBLE PERSONAL PROPERTY OVER THE INTERNET ARE TAXABLE. Wisconsin sales or use tax also applies to taxable products purchased over the Internet. If a buyer does not pay tax to the seller on the purchase of a taxable item, the buyer must pay use tax to the Wisconsin Department of Revenue. For example, if the buyer purchases clothing or appliances from a seller located outside Wisconsin, and the seller does not charge the buyer tax, the buyer is liable for the payment of use tax. For additional information about use tax, please see Wisconsin Use Tax fact sheet.
July 12, 2012
Updates were made to the code or formatting on this page as of July 1, 2016. This date does not reflect the effective date or any other date relating to the content of this page.