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

Every person registered or required to be registered to collect and remit Wisconsin sales or use tax is also required to collect and remit the appropriate premier resort area taxes, regardless of whether the person is “engaged in business” in the premier resort area if the sale meets items (1) and (2) in the para- graph above.

  • IX.

    RECORDKEEPING

    • A.

      General

If you are required to have a seller’s permit, consumer’s use tax certificate, or use tax certifi- cate, you must keep adequate records so that you, as well as the Department of Revenue, can determine the correct amount of tax due.

  • B.

    Records to Keep — Exempt Sales If you claim that part or all of your retail sales of any of the items described in Part I.D.1. through

    • 4.

      on page 7, or taxable services are not subject to Wisconsin sales and use tax, you must keep records to support the exemptions claimed.

The reason for keeping such records is because all sales are taxable until the contrary is estab- lished. The grocer has the burden of proving that a sale of any of the items described in Part I.D.1. through 4. on page 7, or taxable services is not subject to Wisconsin sales tax, unless: (a) the grocer receives an exemption certificate from the purchaser, or (b) the grocer has the other records and information as described in Part IX.C. 1 through 3 below.

not required to obtain any information from the purchaser for these types of sales, the grocer must maintain records which support the amount of exemption claimed for sales of these types of items.

Note: Items 2 and 3 below apply only to sales and purchases of items other than exempt food and food ingredients and bev- erages as described in 1.

2. Items Being Resold by the Purchaser - Sales of items are not subject to Wisconsin sales tax if the purchaser furnishes the gro- cer an exemption certificate claiming resale or some other valid Wisconsin exemption. The grocer must keep the exemption certifi- cate provided by the purchaser to support the exemption from sales tax.

Example: Grocer sells soda to Caterer. Caterer is going to resell the soda to its customers. Caterer must provide Grocer with an exemption certificate claiming resale to purchase the soda without Wis- consin sales tax.

3. Sales to Governmental Agencies and Ex- empt Entities - Sales to a Wisconsin or federal governmental agency, any federally recognized American Indian Tribe or Band in this state, or to a nonprofit organization that holds a certificate of exempt status (CES) number issued by the Wisconsin De- partment of Revenue are exempt from Wisconsin sales tax.

C. Common Exemptions and Records Needed to Support the Exemptions Claimed

Common reasons that sales of any of the items listed in Part I.D.1. through 4. on page 7, or tax- able services by a grocer may not be subject to Wisconsin sales tax and the records to keep to support the exemptions are as follows:

Sales to Wisconsin and federal governmen- tal agencies, municipalities, and public schools may be supported by either: (a) a copy of the purchase order or similar written document identifying the governmental unit as the purchaser, (b) an exemption certifi- cate, or (c) by recording the CES number on the copy of the invoice kept by the grocer.

1.

Exempt Food Items - Sales of certain foods and food ingredients and beverages for hu- man consumption are not subject to Wisconsin sales tax. Although the grocer is

Sales to nonprofit organizations (e.g., churches) must be supported by either: (a) an exemption certificate from the organi-

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