A remote seller is only expected to collect and remit sales or use tax in Wisconsin if its gross sales in the previous or current calendar year exceed $100,000 as of February 20, 2021. The 200 transaction count threshold has been removed.
For federal income tax purposes, the 200 transaction economic nexus threshold and year-end remain in place until February 19, 2021. If the remote seller’s gross sales are less than $100,000, the remote seller’s use tax registration certificate may be inactivated on February 20, 2021. If a remote seller was only forced to register because they exceeded the transaction count threshold, they would only need to collect until February 19, 2021. They may safely de-register for a sales tax permit in the state.
If a remote seller’s fiscal year ended on a different date than the calendar year, they can check their calendar year gross sales on February 20, 2021 to see if they qualify for the small seller exemption.
On Wisconsin’s website, the Department of Revenue has given numerous examples that demonstrate when a remote seller is expected to collect and register to collect Wisconsin sales or use tax in light of the law change.
You can learn more on the Wisconsin Department of Revenue Website here.
As always, feel free to contact TaxValet if you are looking for help eliminating the hassle and stress of sales tax.