US Wisconsin scraps sales tax threshold for foreign sellers
- Feb 28, 2021 | Richard Asquith
Foreign sellers of goods to Wisconsin consumers will now have a similar set of rules to evaluate if they have to register for sales tax to charge local online shoppers. The state withdrew the annual transaction theshold of 200 or more separate sales from 20 February 2021. This means they now only have to register if they are above the $100,000 total sales value per annum.
This follows the example of California, Iowa, North Dakota and Washington states which have also eliminated sales tax registration thresholds.
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Wisconsin introduced the sales tax ‘economic nexus’ test in October 2018. This requires out-of-state sellers to register even if they have no local presence, stock or employees. This followed the 2018 South Dakota vs Wayfair Supreme Court ruling which opened up the way for states to bring non-resident sellers into the sale tax net.
