Sales Tax Update
Effective October 1, 2009, the sale of a digital good is taxable in Wisconsin (2009 Wis. Act 2).See pages 16-18 of Wisconsin Tax Bulletin # 160 (March 2009) for additional information (excerpts are at the bottom of this newsletter).
If you have questions regarding Wisconsin's Sales and Use Tax Law. Prepare your questions for the next MCAI Meeting.
MCA-I November Event - Wednesday, November 4th
LED Lighting Trends and Equipment and Sales & Use Tax Q & A
LED Lighting Trends and Equipment
Learn about LED lighting technology. See and touch LED fixtures and panels; manufacturer's reps will be on hand to answer your questions.
Sales & Use Tax - Q & A
Your questions about Wisconsin sales and Use tax will be answered. A Department of Revenue representative will be on hand. Bring your questions or send in advance to: spvideoinc@gmail.com
Members and students - free
Non-members - $5
Please RSVP to MCAI.
| 5:30 - 6:30 pm - Social hour and facility tour 6:30 - 8:30 pm - Presentations |
SP VIDEO - New Facility 2109 S. 55th Street, West Allis, WI |
Sales and Use Taxes Imposed on Digital Goods
Imposition - Sales Tax: Effective October 1, 2009, state, county, and stadium sales taxes and the premier resort area tax are imposed on the sale, lease, license, or rental of specified digital goods and additional digital goods at retail for the right to use the specified digital goods or additional digital goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right. (Section 77.52(1)(d), Wis. Stats.)Imposition - Use Tax: Effective October 1, 2009, state, county, and stadium use taxes are imposed on the storage, use, or other consumption of specified digital goods and additional digital goods purchased from any retailer, if the purchaser has the right to use the specified digital goods or additional digital goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right. (Section 77.53(1), Wis. Stats.)
Exemptions: An exemption is provided for the sale of and the storage, use, or other consumption of specified digital goods or additional digital goods, if the sale, license, lease, or rental of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from taxation under Subchapter III, Chapter 77, Wis. Stats. (Section 77.54(50), Wis. Stats.)
Definitions: The following definitions apply for purposes of the sales and use tax treatment of digital goods:
(a) "Specified digital goods" means digital audio works, digital audiovisual works, and digital books. For purposes of Subchapter III, Chapter 77, Wis. Stats., the sale of or the storage, use, or other consumption of a digital code is treated the same as the sale of or the storage, use, or other consumption of any specified digital goods for which the digital code relates. (Section 77.51(17x), Wis. Stats.)
(b) "Additional digital goods" means all of the following, if they are transferred electronically: (1) greeting cards; (2)finished artwork; (3)periodicals; and (4)video or electronic games. For purposes of Subchapter III, Chapter 77, Wis. Stats., the sale of or the storage, use, or other consumption of a digital code is treated the same as the sale of or the storage, use, or other consumption of any additional digital goods for which the digital code relates. (Section 77.51(1a), Wis. Stats.)
(c) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other sounds that are transferred electronically, including prerecorded or live music, prerecorded or live readings of books or other written materials, prerecorded or live speeches, ringtones, or other sound recordings but not including audio greeting cards sent by electronic mail. (Section 77.51(3pa), Wis. Stats.)
(d) "Digital audiovisual works" means a series of related images that, when shown in succession, impart an impression of motion, along with accompanying sounds, if any, and that are transferred electronically. "Digital audiovisual works" includes motion pictures, musical videos, news and entertainment programs, and live events, but does not include video greeting cards or video or electronic games. (Section 77.51(3p), Wis. Stats.)
(j) "Transferred electronically" means accessed or obtained by the purchaser by means other than tangible storage media. (Section 77.51(21q), Wis. Stats.)
Sourcing - Sales of Digital Goods: The location of a sale of a specified digital good or additional digital good is determined as follows:
Note: For purposes of the location of a sale of a specified digital good or additional digital good, “receives” means taking possession or making first use of, whichever is first, the specified digital good or additional digital good. (Section 77.522(1)(a)1., Wis. Stats.)
(a) If a purchaser receives the digital good at a seller’s business location, the sale occurs at that business location.
(b) If a purchaser does not receive the digital good at a seller’s business location, the sale occurs at the location where the purchaser, or the purchaser’s designated donee, receives the digital good, including the location indicated by the instructions known to the seller for delivery to the purchaser or the purchaser’s designated donee.
(c) If the location of a sale of the digital good cannot be determined under par. (a) or (b), the sale occurs at the purchaser’s address as indicated by the seller’s business records, if the records are maintained in the ordinary course of the seller’s business and if using that address to establish the location of the sale is not in bad faith.
(d) If the location of a sale of the digital good cannot be determined under par. (a), (b), or (c), the sale occurs at the purchaser’s address as obtained during the consummation of the sale, including the address indicated on the purchaser’s payment instrument, if no other address is available and if using that address is not in bad faith.
(e) If the location of a sale of the digital good cannot be determined under par. (a), (b), (c), or (d), including the circumstance in which the seller has insufficient information to determine the location under par. (a), (b), (c), or (d), the sale occurs at the location from which the digital good was first available for transmission by the seller, not including any location from which the digital good was merely transferred electronically. (Section 77.522(1) and (2), Wis. Stats.)
