Small Business Start-Up Kit - Page 26

Tax Information Seller’s Permit Do you need a Sellers Permit? A seller’s permit is required for every individual, partnership, corporation, or other organization making retail sales, leases, or rentals of tangible personal property or taxable services in Wisconsin, unless all sales are exempt from sales or use tax. NOTE: A seller’s permit will not be issued to wholesalers, manufacturers and other businesses not making direct retail sales of tangible property or taxable services. When should you apply? Apply for a seller’s permit at least three weeks before you open your business. If you buy an existing business, the seller’s permit cannot be transferred to you. You must apply for a new permit. If you applied for a seller’s permit before you opened your business but did not receive the permit at the time of opening the business, you are allowed to make retail sales of tangible personal property and taxable services. However, you are liable for the sales and use taxes and for keeping proper records from the date of opening the business. Security May Be Required Before or after the Department of Revenue issues you a seller’s permit, it may require you to make a security deposit up to $15,000. If you do not make a security deposit as requested, the department may refuse to issue you a seller’s permit or may revoke your permit. In determining whether or not security will be required and the amount of security, the department may consider the applicant’s payment of all taxes administered by the department and any other relevant fees. Security is most commonly requested when there has been a history of delinquent taxes associated with the applicant. If a security request is made, the department will send a notice of the requirement and additional information about the calculation of the security amount. Included will be information about the types of security that can be deposited. Any security deposit will be returned to you if for 24 consecutive months you complied with the sales and use tax law. Refer to sec. Tax 11.925, Wis. Adm. Code, “Sales and Use tax security deposits”. Issuance of the Seller’s Permit After receiving the Application for Business Tax Registration and the security deposit (if requested), a seller’s permit will be issued to you by the department. You must display the seller’s permit in a prominent location at your place of business. If that is not a fixed location, it should be displayed or carried at the various events. A personal wallet copy will be sent with your seller’s permit to provide you with easy access to your permit number. Greater Area Tomah Chamber of Commerce Page | 26