What services are subject to sales tax in Wisconsin?
In Wisconsin, sales tax doesn’t just apply to tangible goods; it also covers a range of services. For business owners and entrepreneurs, understanding which services are taxable is essential for maintaining compliance and avoiding costly penalties.
The Wisconsin Department of Revenue generally imposes sales tax on services that are closely tied to tangible property or direct consumer use. Common taxable services include:
- Admissions and Amusement Services: Tickets for concerts, sporting events, amusement parks, and recreational activities.
- Telecommunications and Digital Services: Phone services and taxable digital goods (note: Internet access is exempt from sales tax).
- Repair, Maintenance, and Installation: Services performed on tangible personal property, from vehicle repairs to home appliance fixes.
- Laundry and Dry Cleaning Services: Unless performed by a nonprofit or exempt entity.
- Certain Personal Services: Photography and landscaping are generally taxable, while most salon services are not taxable unless they include the sale of tangible products.
In contrast, professional services like the law, accounting, advisory services, and essentially all healthcare sectors are usually not included in the sales tax in Wisconsin. Nevertheless, the regulations may be complicated, and some services may be taxable if they are bundled with tangible goods or a taxable product (for example, a service bundled with the sale of a photo CD or item).
For out-of-state entrepreneurs who are planning an expansion into Wisconsin, compliance means more than just the collection of the tax. It’s about the company gaining the trust of the local customers and assuring the smooth running of their operations. This is where OneIBC USA plays a role.
We help businesses with the setup of the entity, managed registered agent services, and corporate compliance, making sure that your company is in sync with Wisconsin’s tax regulations. Our professionals can guide you through the sales tax liabilities right from the beginning, thus avoiding any mistakes which could hamper your progress.
