Wyoming sales and use tax guide

Sales tax is a tax paid to a governing body (state or local) on the sale of certain goods and services. Wyoming first adopted a general state sales tax in 1935, and since that time, the rate has risen to 4%. In addition to the 4% statewide sales tax, Wyoming counties may impose optional local sales taxes, subject to statutory limits. Currently, combined sales tax rates in Wyoming range from 4% to 6%, depending on the location of the sale.

As a business owner selling taxable goods or services, you act as an agent of the state of Wyoming by collecting tax from purchasers and passing it along to the appropriate tax authority. Sales and use tax in Wyoming is administered by the Wyoming Department of Revenue (DOR).

Sales tax collected from customers is not your business revenue. You are responsible for holding and remitting the tax to the Wyoming Department of Revenue as required.

When you need to collect Wyoming sales tax

In Wyoming, sales tax is levied on the sale of tangible goods and some services. The tax is collected by the seller and remitted to state tax authorities. The seller acts as a de facto collector.

To help you determine whether you need to collect sales tax in Wyoming, start by answering these three questions:

1. Do you have nexus in Wyoming?
2. Are you selling taxable goods or services to Wyoming residents?
3. Are your buyers required to pay sales tax?

If you have nexus in Wyoming and make taxable sales for which you are responsible for collecting sales tax, you generally must register with the Wyoming Department of Revenue, collect the applicable sales tax, file sales tax returns, and remit the tax to the state.

Failure to collect Wyoming sales tax

If you meet the criteria for collecting sales tax and choose not to, you’ll be held responsible for the tax due, plus applicable penalties and interest.

It’s extremely important to set up tax collection at the point of sale — it’s near impossible to collect sales tax from customers after a transaction is complete.

The need to collect sales tax in Wyoming is predicated on having a significant connection with the state. This is a concept known as nexus. Nexus is a Latin word that means “to bind or tie,” and it’s the deciding factor for whether the state has the legal authority to require your business to collect, file, and remit sales tax.

Nexus triggers

Sales tax nexus in all states used to be limited to physical presence: A state could require a business to register and collect and remit sales tax only if it had a physical presence in the state, such as employees or an office, retail store, or warehouse.

In June 2018, the Supreme Court of the United States overruled the physical presence rule with its decision in South Dakota v. Wayfair, Inc. States are now free to tax businesses based on their economic and virtual connections to the state, or economic nexus.

While physical presence still triggers a sales tax collection obligation in Wyoming, it’s now possible for out-of-state sellers to have sales tax nexus with Wyoming.

Out-of-state sellers

Out-of-state sellers with no physical presence in a state may establish sales tax nexus in the following ways:
 

Affiliate nexus: An out-of-state seller can have Wyoming sales tax nexus through activities or property in the state, including employees, agents, inventory, offices, warehouses, or other business activities conducted in Wyoming.

Click-through nexus: Having an agreement to reward a person(s) in the state for directly or indirectly referring potential purchasers of goods through an internet link, website, or otherwise. At this time, Wyoming has not enacted a click-through nexus law.

Economic nexus: Having a certain amount of economic activity in the state. Remote sellers must register with the state then collect and remit Wyoming sales tax if the remote seller has more than $100,000 in gross sales during the current or previous calendar year.

Inventory in the state: Storing property for sale in the state. This includes merchandise owned by Fulfillment by Amazon (FBA) merchants and stored in Wyoming in a warehouse owned or operated by Amazon.

Marketplace sales: Wyoming requires marketplace facilitators to collect and remit sales tax on sales they facilitate for marketplace sellers, subject to the state’s marketplace-facilitator rules.

Trade shows: Attending conventions or trade shows in Wyoming. You may be liable for collecting and remitting Wyoming use tax on orders taken or sales made during Wyoming conventions or trade shows.

If you have sales tax nexus in Wyoming, you’re required to register with the Wyoming DOR and to charge, collect, and remit the appropriate tax to the state.

For more information, see the Wyoming Excise Tax Division – Remote Sellers bulletin.

Trailing nexus

Sales tax nexus can linger even after a retailer ceases the activities that caused it to be “engaged in business” in the state. This is known as trailing nexus. Wyoming does not have an explicitly defined trailing nexus policy.

Fulfillment by Amazon (FBA)

If you’re an active Amazon seller and you use Fulfillment by Amazon (FBA), you need to know where your inventory is stored and if its presence in a state will trigger nexus. FBA sellers can also download an Inventory Event Detail Report from Amazon Seller Central to identify inventory stored in Wyoming.

If your inventory is physically stored in Wyoming, you generally have a physical presence in the state and should determine your Wyoming sales tax registration and collection obligations. If you’re required to collect Wyoming sales tax, you’ll need to register with the Wyoming Department of Revenue and collect, report, and remit tax on taxable sales.

Keep in mind that Wyoming also has an economic-nexus requirement for certain remote sellers. A seller without physical presence in Wyoming generally must comply with Wyoming sales-tax requirements once its gross revenue from sales delivered into the state exceeds $100,000 during the current or immediately preceding calendar year.

Sourcing sales tax in Wyoming: which rate to collect

In some states, sales tax rates, rules, and regulations are based on the location of the seller and the origin of the sale (origin-based sourcing). In others, sales tax is based on the location of the buyer and the destination of the sale (destination-based sourcing).

Wyoming is a destination-based state. This means you’re responsible for applying the sales tax rate determined by the ship-to address on all taxable sales.

After determining you have sales tax nexus in Wyoming, you need to register with the proper state authority and collect, file, and remit sales tax to the state. We get a lot of questions about this and recognize it may be the most difficult hurdle for businesses to overcome. Avalara Licensing can help you obtain your Wyoming business license and sales tax registration.

How to register for a Wyoming seller’s permit 

You can register for a Wyoming seller’s permit online through the Wyoming DOR. To apply, you’ll need to provide the Wyoming DOR with certain information about your business, including but not limited to:

• Business name, address, and contact information
• Federal EIN number
• Date business activities began or will begin
• Projected monthly sales
• Projected monthly taxable sales
• Products to be sold

Cost of registering for a Wyoming seller’s permit

The cost to register for a sales tax license in Wyoming is $60.

Acquiring a registered business

If you acquire an existing Wyoming business, you should contact the Wyoming Department of Revenue to determine whether you need a new sales tax license or need to update the existing business’s registration information. If ownership or other business information changes, you should notify the Wyoming Department of Revenue and update your sales tax registration as required.

Streamlined Sales Tax (SST)

The Streamlined Sales and Use Tax Agreement (SSUTA), or Streamlined Sales Tax (SST), is an effort by multiple states to simplify the administration and cost of sales and use tax for remote sellers. Remote sellers can register in multiple states at the same time through the Streamlined Sales Tax Registration System (SSTRS).

Wyoming is a full member of the SST.

Once you’ve successfully registered to collect Wyoming sales tax, you’ll need to apply the correct rate to all taxable sales, remit sales tax, file timely returns with the Wyoming Department of Revenue, and keep excellent records. Here’s what you need to know to keep everything organized and in check.

How you collect Wyoming sales tax is influenced by how you sell your goods:
 

Brick-and-mortar store: Have a physical store? Brick-and-mortar point-of-sale solutions allow users to set the sales tax rate associated with the store location. New tax groups can then be created to allow for specific product tax rules.

Hosted store: Hosted store solutions like Shopify and Squarespace offer integrated sales tax rate determination and collection. Hosted stores offer sellers a dashboard environment where Wyoming sales tax collection can be managed.

Marketplace: Marketplaces like Amazon and Etsy offer integrated sales tax rate determination and collection, usually for a fee. As with hosted stores, you can set things up from your seller dashboard and let your marketplace provider do most of the heavy lifting.

Mobile point of sale: Mobile POS systems can be configured to calculate sales tax based on the transaction’s applicable location and tax rules. Depending on the system, location information may be determined using the device’s settings, address information, or other location data.

Wyoming sales tax collection can be automated to make your life much easier. Avalara AvaTax seamlessly integrates with the business systems you already use to deliver sales and use tax calculations in real time.

Tax-exempt goods

Some goods are exempt from sales tax under Wyoming law. Examples include food for domestic home consumption, certain prescription drugs, and certain medical equipment and supplies.

We recommend businesses review the laws and rules put forth by the Wyoming Department of Revenue to stay up to date on which goods are taxable and which are exempt, and under what conditions.

Some customers are exempt from paying sales tax under Wyoming law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale.

Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

Misplacing a sales tax exemption/resale certificate

Wyoming sales tax exemption and resale certificates are worth far more than the paper they’re written on. If you’re audited and cannot validate an exempt transaction, the Wyoming Department of Revenue may hold you responsible for the uncollected sales tax. In some cases, late fees and interest will be applied and can result in large, unexpected bills.

Sales tax holidays

Sales tax holidays, also known as tax-free weekends, exempt specific products from sales and use tax for a limited period, usually a weekend or a week. Many states offer sales tax holidays, although the number and scope of these programs can change from year to year.

Wyoming does not currently have a statewide sales tax holiday.

You’re registered with the Wyoming Department of Revenue and you’ve begun collecting sales tax. Remember, those tax dollars don’t belong to you. As an agent of the state of Wyoming, your role is that of intermediary to transfer tax dollars from consumers to the tax authorities.

How to file

Once you’ve collected sales tax, you’re required to remit it to the Wyoming Department of Revenue by a certain date. The Wyoming Department of Revenue will then distribute it appropriately.

Filing a Wyoming sales tax return is a two-step process comprised of submitting the required sales data (filing a return) and remitting the collected tax dollars (if any) to the Wyoming DOR. The return requires you to report information about your Wyoming sales and the sales and use tax due, along with any applicable deductions, exemptions, or other required information.

Online filing is generally recommended, but paper returns are acceptable.

Filing frequency

The Wyoming Department of Revenue will assign you a filing frequency. Typically, this is determined by the size or sales volume of your business. State governments generally ask larger businesses to file more frequently. See the filing due dates section for more information.

Wyoming sales tax returns and payments must be remitted at the same time; both have the same due date.

Online filing

You may file directly with the Wyoming DOR by visiting their site and entering your transaction data manually. This is a free service, but preparing Wyoming sales tax returns can be time-consuming — especially for larger sellers.

Using a third party to file returns

To save time and avoid costly errors, many businesses outsource their sales and use tax filing to an accountant, bookkeeper, or sales tax automation software like Avalara AvaTax. This is a normal business practice that can save business owners time and help them steer clear of costly mistakes due to inexperience and a lack of deep knowledge about Wyoming sales tax code.

Filing when there are no sales

Once you have a Wyoming seller’s permit, you’re required to file returns at the completion of each assigned collection period regardless of whether any sales tax was collected. When no sales tax was collected, you must file a “zero return.”

Failure to submit a zero return can result in penalties and interest charges.

Closing a business

The Wyoming DOR requires all businesses to “close their books” by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.

Timely sales tax filing discount

Wyoming provides a vendor compensation credit to eligible vendors that timely report and remit sales and use taxes. Under current Wyoming law, the credit is 1.95% of the first $6,250 of tax due and 1% of tax due above $6,250, subject to a maximum credit of $500 in any month. The credit is available for timely payment and must be claimed as provided by the Department of Revenue.

It’s important to know the due dates associated with the filing frequency assigned to your business by the Wyoming Department of Revenue. This way you’ll be prepared and can plan accordingly. Failure to file by the assigned date can lead to late fines and interest charges.

The due date for a Wyoming sales tax return depends on your assigned filing frequency. Monthly filers must submit their returns and tax by the last day of the month following the month in which the Wyoming sales occurred. Quarterly filers must submit returns and tax by January 31, April 30, July 31, and October 31. Annual filers must submit their returns by January 31. If a due date falls on a weekend or federal or Wyoming state holiday, the next business day becomes the new due date.

Filing a Wyoming sales tax return late may result in a late filing penalty as well as interest on any outstanding tax due. For more information, refer to our section on penalties and interest.

In the event a Wyoming sales tax filing deadline was missed due to circumstances beyond your control (e.g., weather, accident), the Wyoming DOR may grant you an extension. However, you may be asked to provide evidence supporting your claim.

Hopefully you don’t need to worry about this section because you’re filing and remitting Wyoming sales tax on time and without incident. However, in the real world, mistakes happen.

If you miss a sales tax filing deadline, follow the saying, “better late than never,” and file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.

If you’re in the process of acquiring a business, it’s strongly recommended that you contact the Wyoming DOR and inquire about the status of the potential acquisition. When acquiring a Wyoming business, a successor may become liable for the business’s outstanding sales tax obligations if the statutory requirements for successor liability apply. Buyers should contact the Wyoming Department of Revenue before closing and ensure that any required tax amounts are addressed as part of the transaction.

If you’re collecting sales tax from Wyoming residents, you’ll need to consider how to handle taxes on shipping and handling charges.

Taxable and exempt shipping charges

In general, Wyoming sales tax does not apply to separately stated charges for shipping, handling, delivery, freight, and postage.

There are exceptions to almost every rule with sales tax, and the same is true for shipping and handling charges. Specific questions on shipping in Wyoming and sales tax should be taken directly to a tax professional familiar with Wyoming tax laws.

For additional information, see the Wyoming Excise Tax Division’s Exemption Matrix.