Wisconsin Announces Remote Seller Deadlines

Wisconsin announced deadlines for remote sellers that must register and collect sales and use tax beginning October 1, 2018.

In addition, Wisconsin added some common questions and answers to its Wayfair guidance for remote sellers.

Nexus Thresholds for Out-of-State Sellers

Under a proposed rule, remote retailers must register and collect Wisconsin tax if, in the previous or current year, their:

  • annual gross sales into Wisconsin exceed $100,000; or
  • annual number of separate sales transactions into Wisconsin is 200 or more.

Wisconsin plans to begin enforcing this rule on October 1, 2018.

Small Seller Exception

Out-of-state sellers that do not meet the nexus thresholds qualify for the small seller exception. These sellers do not have to register or collect Wisconsin tax until they meet or exceed a nexus threshold.

Registration, Collection Dates for Remote Sellers

Wisconsin gives a detailed guide for remote sellers that must register and collect Wisconsin sales or use tax.

Exceeding a Threshold in 2017

Remote sellers exceeding a threshold in 2017 must register and collect Wisconsin tax beginning on October 1, 2018.

Exceeding a Threshold before October 1, 2018

Remote sellers exceeding a threshold before October 1, 2018, must register and collect Wisconsin tax beginning October 1, 2018. In addition, these remote sellers must collect Wisconsin tax in 2019 because they exceeded a threshold in 2018.

Exceeding the $100,000 Threshold Through December 31, 2018

Remote sellers exceeding the $100,000 threshold between October 1 and December 31, 2018, must register and collect Wisconsin tax beginning with their next sales transaction after meeting the threshold in 2018. In addition, these remote sellers must collect Wisconsin tax in 2019 because they exceeded the $100,000 threshold in 2018.

Meeting the 200 Sales Threshold Through December 31, 2018

Remote sellers meeting the 200-sales threshold between October 1 and December 31, 2018, must register and collect Wisconsin tax beginning with that 200th sale. In addition, these remote sellers must collect Wisconsin tax in 2019 because they met the 200-sales threshold in 2018.

Exceeding a Threshold in 2017 But Not in 2018

Remote sellers exceeding a threshold in 2017 but not in 2018 must register and collect Wisconsin sales or use tax beginning on October 1, 2018. However, these remote sellers:

  • do not have to collect Wisconsin tax in 2019 unless they meet a threshold in 2019;
  • can inactivate their use tax registration certificate effective January 1, 2019; and
  • must collect Wisconsin tax in 2019 if they do not inactivate their use tax registration certificate.

Registration and Collection Dates for Remote Sellers, Wisconsin Department of Revenue, September 10, 2018; Remote Sellers – Wayfair Decision, Wisconsin Department of Revenue, September 10, 2018; Proposed Rule Sec. Tax 11.97, Wisconsin Department of Revenue, September 2018

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CCHTaxGroup

All stories by: CCHTaxGroup