Retailer's Discount

  1. What is the retailer's discount?
  2. When may I claim a retailer's discount?
  3. How is the retailer's discount calculated?

  1. What is the retailer's discount?

    A retailer may deduct a portion of the sales tax reported on a sales and use tax return for the expense of reporting and collecting the sales and use tax.

  2. When may I claim a retailer's discount?

    The retailer's discount is only allowed on timely reported and paid sales tax.

    Note: The discount is not allowed if any of the following apply:

    • The payment of sales tax is delinquent.
    • The sales and use tax due is the result of owing an additional amount after the due date of the return, or after the expiration of any extension period if one has been granted.
    • The tax reported is use tax.
    • A certified service provider is filing the sales and use tax return and is receiving other compensation as provided under Wisconsin law.
  3. How is the retailer's discount calculated?

    If the total sales tax (line 18) on the retailer's sales tax return is:

    • $0 to $10; the discount is the amount on line 18
    • $10 to $2,000; the discount is $10
    • greater than $2,000; the discount is the amount on line 18 times .005, but cannot exceed $1,000 per reporting period.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
Mail Stop 5-77
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email: DORDelinquentTaxIS&ECompl@revenue.wi.gov

November 13, 2014