Sales Tax Obligations of Purchasers in Wisconsin

April 13, 2006

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Wisconsin imposes various requirements on purchasers doing business in Wisconsin. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. In Wisconsin the sales tax does not apply to sales or purchases of tangible personal property or services for resale. You must provide a resale certificate to the seller to document a transaction is exempt under the resale exemption.

Resale exemption certificate. In Wisconsin you may use the Department of Revenue Form S-205 (Resale certificate), or a substitute exemption certificate. A resale certificate must contain the following information to relieve a seller from proving a sale is not taxable:

your name, address, and signature
a description of the general character of the tangible personal property or service sold by the purchaser
a general description of the property or service purchased for resale if a continuous resale certificate is used, or an itemization of the property or service purchased if a single-purchase certificate is used
your seller's permit number as the purchaser
an indication of the general character of your business

Blanket resale certificates. Wisconsin refers to blanket certificates as continuous resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or service for processing or resale. However, blanket certificates may not be used to purchase property or services not covered by a blanket certificate. Continuous resale certificates do not expire and they do not need to be renewed at any prescribed interval. If a seller has not accepted a blanket certificate in good faith, liability for the tax does not shift from the seller to the purchaser.

Purchases from out-of-state vendors. Property brought into Wisconsin on which a sales or use tax has been paid in another state equal to or in excess of the Wisconsin tax is not subject to tax in Wisconsin.