US Wisconsin imposes marketplace sales tax collections

Wisconsin has become the latest US state to require marketplaces to collect sales taxes on transactions by out-of-state retailers on their platforms. The new collections obligations will come into force on 1 October 2019.

Following the June 2018 South Dakota vs Wayfair, Inc ruling at the Supreme Court, most states have enacted sales tax collections obligations on remote sellers. Wisconsin has applied its economic nexus requirement since 1 October 2019. This includes an annual registration threshold of $100,000 in-state revenues or 200 or more unique transactions.

Wisconsin is now requiring marketplaces that facilitate remote sellers’ sales in the state to start collecting the sales tax on their behalf. The marketplace must inform the seller of any tax levied so that they can reconcile to their own Wisconsin sales tax return to the Department of Revenue if they are registered, too. The marketplace is liable for the correct remittance of the sales tax unless it can be proven the seller had provided incorrect data.