The Wisconsin Department of Revenue has made updates to a tax release with changes on the sales and use tax treatment of “buy one, get one free” promotions. Effective September 1, 2011, a retailer that provides a taxable product free of charge in conjunction with the purchase of another taxable product may purchase the product that is to be provided free of charge without tax, for resale. A product is considered to be provided free of charge with the purchase of another product if the customer does not have to pay an additional amount to receive the second product. The sales and use tax treatment of the second product is determined by the invoice or sales receipt provided to the customer. The second product is considered free of charge if the invoice or receipt shows the price for the second product along with the discount amount that reduces the price of the second product to zero. If the invoice or receipt shows that the customer is charged for the second product, and the charge is not discounted or adjusted to zero, the product is not considered to be provided free of charge. (Tax Release, Wisconsin Department of Revenue, December 8, 2011)