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US Wisconsin scraps sales tax threshold for foreign sellers

  • Feb 28, 2021 | Richard Asquith

Foreign sellers of goods to Wisconsin consumers will now have a similar set of rules to evaluate if they have to register for sales tax to charge local online shoppers. The state withdrew the annual transaction theshold of 200 or more separate sales from 20 February 2021. This means they now only have to register if they are above the $100,000 total sales value per annum.

This follows the example of California, Iowa, North Dakota and Washington states which have also eliminated sales tax registration thresholds.

Contact Avalara for free guidance on the US state tax environment, and to learn about our Sales Tax Risk Assessment service.

Wisconsin introduced the sales tax ‘economic nexus’ test in October 2018. This requires out-of-state sellers to register even if they have no local presence, stock or employees. This followed the 2018 South Dakota vs Wayfair Supreme Court ruling which opened up the way for states to bring non-resident sellers into the sale tax net.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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