Do I need to collect sales tax to customers that I sell to in Wisconsin if I do not have NEXUS in Wisconsin?
Sales TaxMany states are changing their sales tax rules and based on the Supreme Court’s South Dakota v. Wayfair decision, Wisconsin has changed their rules.
Per The Sales Tax Institute:
In response to the Supreme Court’s South Dakota v. Wayfair decision, Wisconsin will begin requiring online and other remote sellers to collect and remit applicable sales and use tax on sales into the state, as there is no physical presence requirement. Effective October 1, 2018, Wisconsin will require remote sellers to collect and remit sales or use tax on sales of taxable products and services in Wisconsin, consistent with existing Wisconsin statutes. The specific provision that Wisconsin is basing its authority to impose a collection requirement on remote sellers is:
“Any retailer selling tangible personal property, or items, property, or goods under Section 77.52(1)(b), (c), or (d), or taxable services for storage, use, or other consumption in this state, unless otherwise limited by federal law.”
Statute Section 77.51(13g)(c):
It is their interpretation that the decision in South Dakota v. Wayfair now authorizes them to impose a collection requirement on all remote sellers subject to the standards found to be acceptable in the case.
New standards for administering sales tax laws on online and remote sellers will be developed by administrative rule. The rule will be consistent with the Wayfair decision, which approved a small seller exception for sellers who do not have annual sales of products and services into the state of (1) more than $100,000, or (2) 200 or more separate transactions. Any small seller exception Wisconsin adopts will not apply to sellers with a physical presence in Wisconsin.
The state recommends that remote sellers complete registrations at least three weeks prior to October 1, 2018 to ensure registrations are properly processed by October 1. If a remote seller is required to register with the state solely because of the Wayfair decision, the remote seller is not required to collect and remit sales or use tax on sales that occurred prior to October 1, 2018.