Marketplace Providers and Sellers

Provisions Effective January 1, 2020

2019 Wis. Act 10 clarifies that a marketplace provider is required to collect and remit sales or use tax for all sales of taxable products and services in Wisconsin that the marketplace provider facilitates on behalf of a marketplace seller, as provided in secs. 77.52(3m)(a) and 77.523(1), Wis. Stats.

The Act also reverses the effect of the decision in Orbitz, LLC vs. Wisconsin Department of Revenue, (Wisconsin Court of Appeals, District IV, February 11, 2016) by requiring marketplace providers that facilitate sales of all services under sec. 77.52(2), Wis. Stats., including lodging services, to collect and remit sales or use tax on the entire amount charged to a purchaser, as provided in sec. 77.52(3m)(a), Wis. Stats.

Note: For sales made prior to January 1, 2020, both the marketplace and third-party seller may be liable on taxable sales. See the article titled "Online Marketplace Sellers are Liable for Wisconsin Tax on Third-party Sales" in Wisconsin Tax Bulletin 192 (January 2016) for additional information.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of January 3, 2024: secs. 77.52 and 77.523, Wis. Stats., and sec. Tax 11.555, Wis. Adm. Code.

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 Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis.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

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

Guidance Document Number: 100223

January 3, 2024