Wisconsin Sales Tax Filing Update October 2019: Marketplace Facilitator Laws
Wisconsin passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective January 1, 2020.
• Etsy began this collection on October 1, 2019 ahead of the statutory requirement.
• Amazon, eBay and Walmart began collecting on January 1, 2020.
Please review general information regarding Marketplace Facilitators and how your TaxJar Sales Tax Reports support these changes here in our FAQ.
In this article, we summarize Wisconsin's state guidance on the following questions:
- Do I need to register for a sales tax license in Wisconsin?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on Wisconsin sales on non-marketplace platforms?
- Do I still need to file returns in Wisconsin?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
I've never registered for a Wisconsin license. Do I need to register for a sales tax license in Wisconsin now?
If you have never registered for a sales tax license in Wisconsin and your only sales in Wisconsin are through a Marketplace and your Marketplace Facilitator collects and remits sales tax on your behalf in this state, you will NOT need to register for a Wisconsin sales tax license.
If you are a retailer with a physical presence in Wisconsin or you are a remote seller who has crossed the economic nexus threshold for Wisconsin ($100,000/year in gross revenue, or more than 200 separate sales transactions in Wisconsin in the current or last calendar year), then you will need to register for a Wisconsin sales tax license.
- If you've imported your sales across all platforms into your TaxJar account, you can determine if you have economic nexus in the state by running the Sales & Transactions Checker.
- If you do not meet any of the criteria that create nexus in Wisconsin (physical, economic or otherwise), you won't need to register for a sales tax license in this state.
I have already registered for a license in Wisconsin and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
- We always recommend checking directly with the state or a sales tax consultant who can provide more detailed advice specific to your business scenario prior to canceling your registration.
Do I need to collect taxes on my Wisconsin sales on other platforms?
Yes--if you have nexus in the state (physical or economic) and you make sales to customers in Wisconsin on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Wisconsin orders that are processed on the other platforms.
Do I still need to file returns in Wisconsin?
Yes--once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
- If you've previously registered, the state expects you to remain registered and continue to file returns including zero returns.
I still need to file returns in Wisconsin. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
When filing your return, your "Marketplace Sales" are automatically included in "Gross Sales" on your TaxJar Report.
- Then, you would enter "Gross Sales" from your TaxJar Report on line 1 of your tax return.
- Finally, please be sure to include the "Marketplace Sales" amount from your TaxJar Report in the value you enter on line 5 ("Other" subtractions) of your return.
If you make sales on other platforms in addition to the Marketplace, you'll need to make sure you remit the tax you collected for those sales when you file.
- If you have both marketplace and non-marketplace sales, our Report will show the jurisdictional breakdown for only the non-marketplace sales.
- If you're enrolled in AutoFile for Wisconsin, our system will handle the Marketplace sales deduction process automatically.