Vendors Doing Business with State Agencies and Authorities

  1. What are the provisions of the law affecting vendors who sell to state agencies and authorities?
  2. What state agencies and authorities are covered by this law?
  3. Does this law affect us if we do not have nexus with Wisconsin?
  4. How can you require us to register, collect, and remit Wisconsin sales or use tax if we don't have nexus with Wisconsin?
  5. Does this law affect us if we are a non-profit corporation or organization?
  6. What should I do if my only Wisconsin activity consists of receiving grants and/or aids from Wisconsin agencies?
  7. How do we register to collect and remit Wisconsin sales and use tax?
  8. How can I find out if the product or service sold by our company is subject to Wisconsin sales and use tax?
  9. Do we have to register if all of our sales in Wisconsin will be exempt from sales and use tax?
  10. Who can complete an Affidavit of Exempt Sales?
  11. Why did we receive a request to complete a Registration Verification when we are already registered to collect Wisconsin sales and use tax?
  12. What is an affiliate?
  13. Do we need to complete an Affiliate Registration Verification if we have an affiliate that does not make any sales in Wisconsin?
  14. What will happen if our company or our affiliate does not register to collect and remit Wisconsin sales and use tax and does not qualify to sign an Affidavit of Exempt Sales?
  15. How will we know if we are on the list of ineligible vendors certified to the Wisconsin Department of Administration?
  16. If we are on the list of ineligible vendors, what do we need to do so we can sell goods or services to Wisconsin state agencies and authorities?
  17. If we have not received a request to complete a Registration Verification, do we need to complete the forms for ourselves and our affiliates to remain eligible to sell to the state of Wisconsin?

  1. What are the provisions of the law affecting vendors who sell to state agencies and authorities?

    The law provides that Wisconsin state agencies and authorities cannot purchase any materials, supplies, equipment, or contractual services from a vendor, if the vendor and its affiliates are not registered, collecting, and remitting Wisconsin sales or use tax on sales of tangible personal property and taxable services in Wisconsin. The Secretary of Revenue is required to periodically certify to the Secretary of Administration, the names of vendors and their affiliates who are not properly registered and remitting Wisconsin sales or use tax. (Sections 16.75(10m) and 77.66, Wis. Stats.)

  2. What state agencies and authorities are covered by this law?
    • All Wisconsin State Agencies
    • Legislative and Judicial Branches
    • Health and Educational Facilities Authority
    • Bradley Center Sports and Entertainment Corporation
    • University of Wisconsin Hospitals and Clinics Authority
    • Wisconsin Housing and Economic Development Authority
    • World Dairy Center Authority
    • Fox River Navigational System Authority
  3. Does this law affect us if we do not have nexus with Wisconsin?

    Yes. While this law does not change the definition of nexus, it does prohibit Wisconsin agencies and authorities from purchasing from vendors if they and their affiliates are not registered, collecting, and remitting Wisconsin sales or use tax. If you want to sell to Wisconsin agencies and authorities, you and any affiliates selling in Wisconsin must be registered, unless you and/or your affiliates qualify to sign an Affidavit of Exempt Sales.

  4. How can you require us to register, collect, and remit Wisconsin sales or use tax if we don't have nexus with Wisconsin?

    The department cannot require you to register if you do not have nexus with Wisconsin. However, if you or any of your affiliates are not registered and do not qualify to sign an Affidavit of Exempt Sales, Wisconsin agencies and authorities will be prohibited from purchasing property or services from your company and your affiliates.

  5. Does this law affect us if we are a non-profit corporation or organization?

    Yes. In order to continue doing business with Wisconsin state agencies and authorities, a non-profit corporation or organization must register to collect and remit Wisconsin sales and use tax if its sales of products or services are subject to the tax.

  6. What should I do if my only Wisconsin activity consists of receiving grants and/or aids from Wisconsin agencies?

    If your only activity in Wisconsin consists of receiving grants and/or aids, you do not have to register to collect and remit Wisconsin sales and use tax since you do not have taxable sales of tangible personal property or services in Wisconsin. Complete and submit a Registration Verification and an Affidavit of Exempt Sales. In addition, you will need to complete an Affiliate Registration Verification if you have affiliates with any Wisconsin business activity.

  7. How do we register to collect and remit Wisconsin sales and use tax?

    Complete Form BTR-101 Application for Business Tax Registration and submit it with the $20 Business Tax Registration fee. You can also apply using our online registration application. For additional information about registering, collecting and remitting Wisconsin sales and use tax, please see our website.

  8. How can I find out if the product or service sold by our company is subject to Wisconsin sales and use tax?

    The Wisconsin Department of Revenue website has many sales and use tax publications that may help you determine if your product or service is taxable. You may also refer to Chapter 77 of the Wisconsin statutes.

    Questions about Wisconsin sales and use tax laws may be directed to the Department's Customer Service Bureau.

    Telephone:(608) 266-2776
    Email: DORBusinessTax@revenue.wi.gov

    Mail: Wisconsin Department of Revenue
            Customer Service Bureau
            Mail Stop 5-77
            PO Box 8949
            Madison, WI 53708-8949

  9. Do we have to register if all of our sales in Wisconsin will be exempt from sales and use tax?

    No. If all of your sales in Wisconsin will be exempt from sales and use tax, you may sign an Affidavit of Exempt Sales instead of registering.

  10. Who can complete an Affidavit of Exempt Sales?

    Any business that only makes sales that are not subject to sales or use tax under ch. 77, Wis. Stats., may complete an Affidavit of Exempt Sales. This is certification that all sales the business makes in Wisconsin are exempt from the Wisconsin sales and use tax. Examples of exempt sales are sales for resale, sales to governmental units, sales to exempt organizations, and sales of non-taxable services. Exempt sales do not include sales of tangible personal property or taxable services on which a business does not collect tax solely because it does not have nexus with Wisconsin. Any business having only exempt sales will not be required to register for the collection of Wisconsin sales or use tax.

  11. Why did we receive a request to complete a Registration Verification when we are already registered to collect Wisconsin sales and use tax?

    All vendors are being asked to complete a Registration Verification because we need to know if you have any affiliates that make sales of property or services in Wisconsin. If you have any such affiliates, you need to complete an Affiliate Registration Verification. You may also need to complete an Application for Business Tax Registration or Affidavit of Exempt Sales for each affiliate.

  12. What is an affiliate?

    An affiliate means a business that controls, is controlled by, or is under common control with another business. Control means to own, directly or indirectly, more than 10% of the interest in or voting securities of a business.

  13. Do we need to complete an Affiliate Registration Verification if we have an affiliate that does not make any sales in Wisconsin?

    No. If your affiliate does not make any Wisconsin sales of products or services, you do not need to complete an Affiliate Registration Verification for it.

  14. What will happen if our company or our affiliate does not register to collect and remit Wisconsin sales and use tax and does not qualify to sign an Affidavit of Exempt Sales?

    If your company, or an affiliate, does not register to collect and remit Wisconsin sales and use tax and does not qualify to sign an Affidavit of Exempt Sales, we will certify your company to the Wisconsin Department of Administration. Wisconsin agencies and authorities will then be prohibited from purchasing property or services from your company and your affiliates. Companies will be removed from the certification list if they later register to collect Wisconsin sales and use tax or complete a valid Affidavit of Exempt Sales.

  15. How will we know if we are on the list of ineligible vendors certified to the Wisconsin Department of Administration?

    A "Notice of Intent to Certify" will be sent to any company that we intend to put on the certification (ineligible) list.

  16. If we are on the list of ineligible vendors, what do we need to do so we can sell goods or services to Wisconsin state agencies and authorities?

    You need to complete a Registration Verification and mail or fax it to:

    Wisconsin Department of Revenue
    Nexus Unit
    Mail Stop 3-107
    PO Box 8906
    Madison, WI 53708-8906

    Fax: (608) 261-7049

    With the Registration Verification form you may also need to complete and submit an Application for Business Tax Registration, Affidavit of Exempt Sales, and/or Affiliate Registration Verification. Upon receipt of all necessary forms, we will issue a letter verifying that your company is now in compliance with this law. We will then remove your company from the list of ineligible vendors certified to the Wisconsin Department of Administration. Call (608) 266-3969 for additional information.

  17. If we have not received a request to complete a Registration Verification, do we need to complete the forms for ourselves and our affiliates to remain eligible to sell to the state of Wisconsin?

    We have been contacting vendors who sell to Wisconsin agencies and authorities to request the Registration Verification forms. If we have not yet contacted your company, you may still complete and submit the required forms at this time. We will then add your company to the list of those in compliance with the law.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Nexus Unit
Mail Stop 3-107
PO Box 8906
Madison, WI 53708-8906
Phone: (608) 266-3969
Fax: (608) 261-7049
Email: DORNexusUnit@revenue.wi.gov

Page last updated December 30, 2013