Wisconsin clarifies sales and use tax of antiques, crafts and artwork in July fact sheet

Sellers of antiques, crafts and artwork in Wisconsin will need a seller’s permit, and the items are subject to sales tax unless an exemption applies, according to a fact sheet published by the Wisconsin Department of Revenue in July 2022.

The guidance says Wisconsin art and antique dealers are required to register for a seller’s permit and must remit state sales tax. Exceptions include qualifying for an occasional sale exemption, the seller only makes sales through a marketplace provider which is required to collect Wisconsin sales tax on behalf of the seller, or the sale is by a remote seller who qualifies for the small seller exemption.

The state sales tax in Wisconsin is 5 percent, but sellers may also be subject to county, local exposition food and beverage tax, and premier resort area taxes, which are all set at 0.5 percent or higher (premier resort area tax).

The sales tax responsibilities of such sellers are impacted based on the state’s requirements. It should be noted that a seller who is claiming the occasional sale exemption and does not hold a seller’s permit must pay sales tax on the purchase of property that the seller will resell. If a seller does not hold a seller’s permit due to making sales only through a physical or electronic marketplace operated by a marketplace provider, the seller may claim the resale exemption when purchasing the property. To do so, the seller should provide a Wisconsin exemption certificate and note “exempt sales only” on the resale line.

A remote seller, defined as an out of state seller with no physical presence or activities in Wisconsin other than making sales into Wisconsin, must collect and remit Wisconsin sales tax provided the seller is over the $100,000 gross sales threshold. The small seller exemption for sellers below the threshold is applicable by evaluating it in both the previous and current year.

Those with sales into Wisconsin should evaluate whether the exemptions for occasional sales, marketplace sales, and remote sales are applicable to their business and ensure they are collecting and remitting tax appropriately where required (Wisconsin Department of Revenue, Fact Sheet 2112, July 14, 2022).

Posted on July 26, 2022