A nonprofit organization is required to charge Wisconsin sales tax unless an exemption, such as the occasional sale exemption for nonprofit organizations, applies. If a nonprofit organization makes sales of taxable products or services, the organization is required to obtain a seller’s permit and collect and remit sales tax on those sales.
A nonprofit organization's sales are exempt occasional sales if
all of the following standards are met:
- Its sales of otherwise taxable products occur on 75 days or less in a calendar year OR are $50,000 or less in a calendar year;
- Entertainment is not involved at an event for which admission is charged. "Entertainment" is not involved if the total amount paid for ALL entertainment is $10,000 or less; and
- The nonprofit organization does not have and is not required to have a seller's permit.
If the nonprofit organization holds a seller's permit, but its sales would otherwise qualify as exempt occasional sales, the organization is still required to collect and remit Wisconsin sales tax on all of its sales of taxable products and services, unless another exemption applies.
Note: If a nonprofit organization obtains a seller’s permit solely for an admission event in which entertainment is involved, and the nonprofit organization does not request inactivation of the seller’s permit after the event, the organization
does not qualify for the occasional sale exemption on its sales of taxable products and services after the event, regardless of the number of days and dollar amount of its sales. The nonprofit organization must request inactivation of the seller's permit in order for the occasional sale exemption to apply to such sales.
For additional information about the occasional sale exemption for nonprofit organizations, see the following:
July 1, 2017