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Grocers - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

Grocer’s purchases of blank money orders are subject to Wisconsin sales and use tax.

  • I.

    Photography Sales and Purchases

    • 1.

      Sales of Photography Related Items Taxable sales include:

      • Sales of undeveloped film, camera bat- teries, flash bulbs, and other photographic supplies and accessories

      • Developing, processing, printing, and enlarging film, photographs, and slides

      • Sales of CDs that contain the customer’s pictures

      • Sales of specified digital goods (See Publication 240, Digital Goods, for ad- ditional information)

    • 2.

      Purchases of Photography Related Items Purchases which may be made without Wis- consin sales and use tax include:

      • Undeveloped film, camera batteries, flash bulbs, and other photographic sup- plies and accessories which are resold to customers

      • Developing, processing, printing, and enlarging services which are resold to customers

      • Machinery and equipment used exclu- sively and directly in developing exposed film into negatives and printing the completed photographs

      • Chemicals and other supplies consumed, destroyed or losing its identity in the de- veloping of the exposed film into negatives and printing the completed photographs

The grocer must provide the supplier of these items and services with an exemption certificate to purchase them without Wis- consin sales and use tax.

Example 1 - Film Developing (Pur- chase and Sale): Grocer receives two rolls of film from a customer which are to be developed into photographs. Gro- cer charges $10 for the service. Grocer A sends the film received from its custom- er to Developer. Grocer is charged $5 by Developer for the developing services. Grocer provides the photographs to its customer. The $10 charge by Grocer to its customer is subject to Wisconsin sales tax. The $5 charge by Developer to Grocer is not subject to Wisconsin sales tax because Grocer is reselling the ser- vice. Grocer must provide Developer with an exemption certificate claiming resale to purchase the developing service without Wisconsin sales and use tax.

Example 2

  • -

    Film

Developing

Equip-

ment: Grocer operates a grocery store. Included in the grocery store is a photo department. The photo department pro- vides photofinishing services (i.e., develops exposed film into color photo-

graphs). machines

Grocer’s purchases and equipment from

of the Supplier

which are used in developing

exclusively and directly the exposed film and

printing

the

photographs

are

exempt

from Wisconsin sales and use cer must provide Supplier with

tax. Gro- either the

isconsin Sales and Use Tax Exemption Certificate (Form S-211), or another ful- ly completed exemption certificate claiming the appropriate exemption to purchase the machinery and equipment without paying Wisconsin sales and use tax.

  • J.

    Vending Machine Sales and Purchases

    • 1.

      Sales Through Vending Machines

      • (a)

        Exempt Vending Machine Sales Sales of food, food ingredients, and bev-

erages from vending machines are subject to Wisconsin sales or use tax if

39

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