Registration and Collection Dates for Remote Sellers

Beginning October 1, 2018, Wisconsin requires out-of-state retailers (i.e., remote sellers) to collect and remit sales or use tax on sales of taxable products and services in Wisconsin. A remote seller that has no activities in Wisconsin other than making sales is not required to register and collect Wisconsin sales or use tax if it qualifies for the small seller exception. The small seller exception is provided by rule and applies to remote sellers that have $100,000 or less in annual gross sales and less than 200 separate sales transactions in Wisconsin in both the previous year and current year. 

A remote seller is required to collect and remit Wisconsin sales or use tax on sales of taxable products and services in Wisconsin if it does not qualify for the small seller exception. The following examples (not all-inclusive) illustrate when a remote seller is required to register and collect Wisconsin sales or use tax.

Index of examples

Example 1 – Remote seller exceeds annual gross sales threshold in 2017

Example 2 – Remote seller does not meet or exceed either threshold in 2017 and 2018

Example 3 – Remote seller exceeds separate sales transactions threshold prior to October 1, 2018

Example 4 – Remote seller exceeds annual gross sales threshold in 2018 after October 1, 2018

Example 5 – Remote seller reaches 200th separate sales transaction after October 1, 2018

Example 6 – Remote seller exceeds threshold in 2017 but not in 2018

Example 1: Remote Seller had $300,000 annual gross sales and 175 separate sales transactions into Wisconsin in 2017.  Since Remote Seller exceeded the annual gross sales threshold in 2017, it is required to register and collect Wisconsin sales or use tax beginning on October 1, 2018.

Example 2: Remote Seller has $45,000 annual gross sales and 95 separate sales transactions into Wisconsin in 2017.  From January 1, 2018 through September 30, 2018, Remote Seller has $65,000 gross sales and 120 separate sales transactions into Wisconsin.  Remote seller is not required to register and collect Wisconsin sales or use tax on October 1, 2018.  From October 1, 2018 through December 31, 2018, Remote Seller had an additional $10,000 gross sales and 10 separate sales transactions into Wisconsin, bringing the total in 2018 to $75,000 gross sales and 130 separate sales transactions.  Since Remote Seller qualifies for the small seller exception, it is not required to register and collect Wisconsin sales or use tax until it meets or exceeds one of the thresholds in 2019.

Example 3: Remote Seller has $90,000 annual gross sales and 155 separate sales transactions into Wisconsin in 2017.  From January 1, 2018 through September 30, 2018, Remote seller has $75,000 gross sales and 220 separate sales transactions into Wisconsin.  Since Remote Seller exceeded the separate sales transactions threshold during 2018, Remote Seller is required to register and collect Wisconsin sales or use tax beginning on October 1, 2018.  In addition, Remote Seller is required to collect Wisconsin sales or use tax in 2019 because it exceeded the threshold in 2018.

Example 4: Same as Example 3, except from January 1, 2018 through September 30, 2018, Remote Seller has $95,000 gross sales and 185 separate sales transactions into Wisconsin.  On October 19, 2018, Remote Seller has a $6,000 Wisconsin sale, which brings its annual gross sales in 2018 to $101,000.  Remote Seller is required to register and collect Wisconsin sales or use tax beginning with its next sales transaction in 2018.  In addition, Remote Seller is required to collect Wisconsin sales or use tax in 2019 because it exceeded the threshold in 2018.

Example 5:Same as Example 3, except from January 1, 2018 through September 30, 2018, Remote Seller has $65,000 gross sales and 199 separate sales transactions into Wisconsin.  On October 15, 2018, remote seller has a $1,000 Wisconsin sale, which brings its number of separate sales transactions in 2018 to 200.  Remote Seller is required to register and collect Wisconsin sales or use tax beginning with the $1,000 sale on October 15, 2018.  Remote Seller is also required to collect Wisconsin sales or use tax in 2019 because it met or exceeded the sales transaction threshold in 2018.

Example 6: Remote Seller has $140,000 annual gross sales and 245 separate sales transactions into Wisconsin in 2017.  Remote Seller is required to register and collect Wisconsin sales and use tax beginning on October 1, 2018. During 2018, Remote Seller has annual gross sales of $68,000 and 160 separate sales transactions into Wisconsin.  Remote Seller is not required to collect Wisconsin sales or use tax in 2019, unless it meets or exceeds one of the thresholds in 2019.  Since Remote Seller qualifies for the small seller exception, it may inactivate its use tax registration certificate effective January 1, 2019.  Remote Seller is required to collect Wisconsin sales and use tax in 2019 if it does not inactivate its use tax registration certificate.

September 10, 2018