South Dakota v. Wayfair Update: Wisconsin

The United States Supreme Court recently ruled in South Dakota v. Wayfair that a state can require out-of-state sellers without a physical presence in that state (i.e., remote sellers) to collect and remit sales or use tax on sales delivered into that state. On July 5, 2018, the Wisconsin Department of Revenue released a notice in response to the decision.

The notice stated that:

  • Beginning 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. Wisconsin statute requires all sellers to collect sales or use tax unless limited by federal law.
  • New standards for administering sales tax laws on remote sellers will be developed by rule. The rule will be consistent with the Court's decision in Wayfair, which approved a small seller exception for sellers who do not have annual sales of products and services into the state of:
    • more than $100,000; or
    • 200 or more separate transactions.

Note: Any small seller exception adopted will not apply to sellers with a physical presence in Wisconsin.

New Sales Tax Landscape for Online Sellers

The recent U.S. Supreme Court ruling in South Dakota v. Wayfair overturning the long-held Quill decision will dramatically change the landscape for online sellers when it comes to sales tax.

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