Last year’s Supreme Court decision in South Dakota v. Wayfair ruled that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. Wisconsin required remote sellers to begin collecting sales or use tax on October 1, 2018.
Not only states, but also counties, municipalities and other taxing jurisdictions (there are about 10,000 nationwide) are requiring retailers to register to collect sales tax. While it is possible in some states (like Wisconsin) to register at the state level for counties and municipalities, in other cases the law requires a separate registration in each state, county and municipality.
Compliance is made even more difficult by the state-by-state variations in laws and deadlines. CPAs can take steps to help business clients prepare to comply with the new tax law. Detailed information on what remote sellers need to do in Wisconsin is available on the DOR’s website.