Pub 225 Barber and Beauty Shops -- May 2016

State of Wisconsin

Department of Revenue

Barber and

Beauty Shops

How Do Wisconsin Sales and Use

Taxes Affect Your Operations?

Publication 225 (05/16)

Printed on

Recycled Paper

Important Rate Changes!

BEGINNING JANUARY 1, 2024:

o Milwaukee County sales and use tax rate increases

from 0.5% to 0.9%

o City of Milwaukee imposes a new 2% sales and use tax

o See Fact Sheet 2414 Milwaukee Sales and Use Taxes

See the Sales Tax Rate Chart for a complete list of county

sales and use tax rates and their effective dates

Table of Contents

Page

I. INTRODUCTION ......................................................................................................................................... 3

II. SALES ............................................................................................................................................................ 3

A. Nontaxable Sales ..................................................................................................................................... 3

1. Sales of Nontaxable Services ...........................................................................................................3

2. Sales of Nontaxable Tangible Personal Property .............................................................................4

B. Taxable Sales .......................................................................................................................................... 4

1. Sales of Taxable Tangible Personal Property ...................................................................................4

2. Leases of Certain Property ...............................................................................................................4

3. Specified digital goods, additional digital goods, and digital codes. ...............................................4

4. Sales of Taxable Services .................................................................................................................5

5. Combination of Tangible Personal Property and Nontaxable Services ...........................................5

III. PURCHASES ................................................................................................................................................ 5

A. Purchases of Items Used By a Barber or Beauty Shop ........................................................................... 5

1. Taxable Purchases ............................................................................................................................5

2. Don’t Forget Use Tax .......................................................................................................................6

B. Purchases of Items Which Are Sold to Customers ................................................................................. 6

IV. OCCASIONAL SALE EXEMPTION ........................................................................................................ 6

V. SPECIAL SITUATIONS .............................................................................................................................. 7

A. Wigs and Hairpieces ............................................................................................................................... 7

B. Leasing Chairs and Floor Space Rental .................................................................................................. 8

C. Sales of Business Assets ......................................................................................................................... 8

1. Selling Business Assets While Continuing Business .......................................................................8

2. Selling Business Assets After Ceasing Business ..............................................................................9

D. Furnishing Alcohol Beverages With Services ........................................................................................ 9

VI. OBTAINING A SELLER’S PERMIT ........................................................................................................ 9

VII. FILING RETURNS ...................................................................................................................................... 9

VIII. QUESTIONS? ............................................................................................................................................. 11

Barber and Beauty Shops - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

IMPORTANT CHANGES

Football Stadium Tax in Brown County Ended

September 30, 2015. Page 3.

Furnishing Alcohol Beverages With Services.

Information about selling or giving away alcohol

beverages with barber or beauty shop services has

been added. Page 9.

I. INTRODUCTION

This publication explains how Wisconsin sales and use

taxes affect barber and beauty shops. It includes exam-

ples of nontaxable and taxable sales and purchases. If

you have questions after reading this publication, con-

tact any Wisconsin Department of Revenue office for

assistance.

Certain sales and purchases by barber and beauty shops

which are subject to the 5% state tax may also be sub-

ject to the (a) 0.5% county sales and use tax, (b) 0.1%

baseball stadium sales and use tax, (c) 0.5% football

stadium sales and use tax (ended September 30, 2015),

(d) 0.5% local exposition tax on food and beverages,

and (e) 0.5% premier resort area tax (in the City of

Bayfield, the City of Eagle River, and the Village of

Stockholm) or 1.25% premier resort area tax (in the

City of Wisconsin Dells and the Village of Lake Del-

ton). Additional information about these taxes is

provided in the following:

(a) County tax: Publication 201, Wisconsin Sales and

Use Tax Information, Part XVIII.

(b) Baseball stadium tax: Publication 201, Wisconsin

Sales and Use Tax Information, Part XVIII.

Sales and Use Tax Information, Part XVIII. Note:

The football stadium tax ended September 30,

2015.

(d) Local exposition tax on food and beverages: Pub-

lication 410, Local Exposition Taxes. (Sales of

food and beverages which are subject to the 5%

Wisconsin state sales tax may also be subject to

the 0.5% food and beverage local exposition tax if

the sales take place in a municipality located

wholly or partially in Milwaukee County.)

(e) Premier resort area tax: Publication 403, Premier

Resort Area Tax. Applies in the Village of Lake

Delton, the City of Wisconsin Dells, the City of

Bayfield, the City of Eagle River, and the Village

of Stockholm.

CAUTION

The information in this publication reflects inter-

pretations by the Wisconsin Department of

Revenue of laws enacted by the Wisconsin Legisla-

ture as of May 1, 2016. Laws enacted and in effect

after that date, administrative rules, and court deci-

sions may change the in

terpretations in this

publication. The examples and lists of taxable and

nontaxable sales and purchases are not all-

inclusive. They merely set forth common examples.

II. SALES

A. Nontaxable Sales

1. Sales of Nontaxable Services

Charges by a barber or beauty shop for services

performed on persons are not subject to Wis-

consin sales and use tax.

Examples of nontaxable services performed on

persons include (this list is not all-inclusive):

• body wrapping (e.g., herbal, mud)

• cutting, dyeing, perming, shampooing, and

styling hair

• electrolysis

• massaging

• manicuring

• pedicuring

• performing facials

• piercing ears (and other body piercing)

• shaving

• spray tanning

• tanning in tanning bed or booth

Publication 225

• tattooing (permanent or temporary)

• waxing

2. Sales of Nontaxable Tangible Personal Property

The sale of tangible personal property is subject

to tax, unless an exemption applies.

Examples of sales of exempt tangible personal

property include:

• wigs, toupees, and hairpieces that replace

missing hair (see Part V.A., for a special

exemption for wigs and hairpieces)

• Sales of food and food ingredients from a

vending machine, except those listed in

Part B.1.

See Part V. for information about special situations.

B. Taxable Sales

Note: The occasional sale exemption may apply to

sales described in Sections 1. and 2. below. (See

Part IV.)

1. Sales of Taxable Tangible Personal Property

The sale, lease, or rental of tangible personal

property by a barber or beauty shop is subject to

Wisconsin sales tax.

Examples of taxable sales of tangible personal

property include (this list is not all-inclusive):

• candy and soft drinks

• false nails *

• greeting cards

• hair-care products and accessories (e.g.,

combs, brushes, shampoos, conditioners,

hair bows)*

• jewelry *

• lotions *

• packaged cosmetics (e.g., powders, lipstick,

nail polish) *

• perfumes *

• vending machine sales of tangible personal

property that are not food or beverages

(e.g., combs, brushes, aspirin)

• Sales of the following items from vending

machines:

- prepared foods, including heated foods

and heated beverages

- candy, chewing gum, and lozenges

- soft drinks

- dietary supplements

Additional information on the sale of food

and food ingredients from vending ma-

chines can be found in Publication 220 and

sec. Tax 11.51, Wis. Adm. Code.

• wigs, toupees, and hairpieces sold as cos-

metic accessories (excluding those that

replace missing hair)* (see Part V.A.)

*If a nontaxable service is provided with these

items, see Section II.B.5.

2. Leases of Certain Property

Leases of property that is affixed to real proper-

ty if the lessor has the right to remove the

property upon breach or termination of the lease

agreement, unless the lessor of the leased prop-

erty is also the lessor of the real property to

which the leased property is affixed. See

Part V.B.

3. Specified digital goods, additional digital

goods, and digital codes.

Examples of taxable sales of digital goods in-

clude (this list is not all-inclusive):

• digital photographs

• music downloads

• ringtones

• video downloads

For additional information about digital goods,

see Publication 240, Digital Goods.

Barber and Beauty Shops - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

4. Sales of Taxable Services

A barber or beauty shop’s service to tangible

personal property is subject to Wisconsin sales

or use tax. For example, the charge for cleaning

a wig that is part of a costume is subject to

Wisconsin sales or use tax. (See Part V.A., for a

special exemption for wigs and hairpieces.)

5. Combination of Tangible Personal Property and

Nontaxable Services

When tangible personal property is transferred

by a barber or beauty shop to a customer inci-

dentally with a nontaxable service, and the

tangible personal property is essential to the use

of the service and provided exclusively in con-

nection with the service, the entire charge to the

customer is nontaxable. The barber or beauty

shop is considered the consumer of the tangible

personal property that it uses in providing the

service and is liable for Wisconsin sales or use

tax on its purchase of such property. (See

Part III.)

If it is optional that the tangible personal prop-

erty be obtained from the service provider, the

tangible personal property is not considered to

be transferred incidentally with the nontaxable

service. The charge for the tangible personal

property is subject to tax, unless an exemption

applies.

Example 1: Beauty Shop is offering a special.

Persons who have their hair styled for $20 may

purchase a package of hair bows for $8. The

$20 charge for hair styling is not taxable; how-

ever, the $8 charge for the hair bows is taxable.

Example 2: Tan Room sells a tanning session

for $25. The customer is required by Tan Room

to wear protective goggles. The customer may

buy the goggles from Tan Room for $10, rent

the goggles for $5, or purchase the goggles

from another retailer. The $25 charge for the

tanning session is not taxable. The charge for

the goggles is taxable, regardless of whether the

goggles are sold or rented.

Example 3: Salon charges Customer $45 to ap-

ply false fingernails. The false fingernails are

provided by Salon and are included in the $45

charge. If Customer was to bring in her own

false fingernails for Salon to apply, Salon

would still charge Customer $45 to apply the

false fingernails that she brings in. Salon’s

charge of $45 to Customer is not subject to tax.

Salon is liable for sales or use tax on its pur-

chase of the false fingernails that it provides to

Customer in providing the nontaxable service

of applying the false fingernails.

Example 4: Same as Example 3, except that

Salon would charge Customer $25 to apply

false fingernails that she brings in. Since the

$20 charge for the false fingernails is optional

(that is, Customer receives the service for a

lesser amount if she chooses not to purchase the

false fingernails from Salon), the $20 charge for

the sale of the false fingernails to Customer

is subject to tax. The $25 charge to apply the

nails is not subject to tax. Salon may purchase

the false fingernails that it sells to Customer

without tax for resale. See Part III.B., for in-

formation about purchasing items for resale.

Example 5: Same as Example 3, except Salon

offers premium nails for an additional charge.

Salon offers the standard false fingernails for its

fee of $45, but Customer may choose the pre-

mium false fingernails for a total charge of $80.

Of the $80 charge, $45 is considered to be for

providing the nontaxable service of applying

the false fingernails, and the additional $35 is

for the taxable sale of the false fingernails. Sa-

lon may purchase the false fingernails that it

sells to Customer without tax for resale. See

Part III.B., for information about purchasing

items for resale.

III. PURCHASES

A. Purchases of Items Used By a Barber or Beauty

Shop

1. Taxable Purchases

Items purchased and used by a barber or beauty

shop are taxable. This includes items that it uses

in providing a nontaxable service (for example,

cutting, dyeing, perming, setting, or shampoo-

ing hair, hairstyling, electrolysis, massaging,

Publication 225

manicuring, pedicuring, piercing, shaving, tan-

ning).

Examples of items used by a barber or beauty

shop are as follows (this list is not all-

inclusive):

• combs and brushes

• shampoos and conditioners

• hair dyes, gels, and sprays

• rollers, curling irons, and hair dryers

• oils, creams, and lotions

• scissors, razors, and clippers

• office supplies

• chairs and tables

• certain digital goods, such as digitally

downloaded music. Information about digi-

tal goods is available in Publication 240.

2. Don’t Forget Use Tax

A barber or beauty shop is liable for Wisconsin

use tax if it purchases items that it uses and the

seller does not charge Wisconsin sales or use

tax to the barber or beauty shop.

Two common situations are:

a. Buying items (e.g., combs, brushes) from

an out-of-state seller that does not charge

Wisconsin sales tax, and

b. Buying items without tax by providing an

exemption certificate indicating resale to

the seller of tangible personal property and

then using the property in providing non-

taxable services.

Example 1: Salon purchased new mirror tables for

$500 plus $50 shipping for its salon from Company,

located outside Wisconsin. Company shipped the

new tables to Salon and did not charge Wisconsin

sales or use tax. Salon must report and pay use tax

on $550 (its purchase price, including shipping, of

the mirror tables).

Example 2: Shampoo is purchased for $2 a bottle

without sales and use tax by Barber Shop to sell to

its customers. The shop uses 20 bottles of shampoo

in providing shampooing services to its customers.

Barber Shop is subject to tax on its purchase price

of shampoo it used in providing its nontaxable ser-

vices (20 bottles x $2 = $40).

B. Purchases of Items Which Are Sold to

Customers

Tangible personal property and taxable services

purchased by a beauty or barber shop that it will not

use, but will sell to its customers, may be purchased

by the beauty or barber shop without tax by provid-

ing an exemption certificate indicating resale to its

supplier. Sales tax is collected by the barber or

beauty shop when the tangible personal property

and taxable services are sold to its customers.

Examples of items that may be purchased by a bar-

ber or beauty shop without tax if they are purchased

to sell to others are (this list is not all-inclusive):

• candy and soft drinks

• false nails*

• greeting cards

• hair-care products and accessories (e.g., combs,

brushes, shampoos, conditioners, hair bows)*

• jewelry*

• lotions*

• packaged cosmetics (e.g., powders, lipstick,

nail polish)*

• perfume*

• wigs, toupees, and hair pieces

*If a nontaxable service is provided with these

items, they may be subject to tax when purchased.

See Part II.B.5.

Note: A barber or beauty shop is required to pay

sales or use tax on its purchases of tangible personal

property sold to customers if the sales qualify as

exempt occasional sales. (See Part IV.)

IV. OCCASIONAL SALE EXEMPTION

Sales of items listed in Part II. B. of this publication,

may be exempt from Wisconsin sales and use tax as

Barber and Beauty Shops - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

occasional sales if certain conditions are met. If a barber

or beauty shop’s sales qualify for the occasional sale

exemption, it is not required to remit Wisconsin sales

tax on such sales.

Note: A barber or beauty shop is required to pay Wis-

consin sales or use tax on its purchases of tangible

personal property and taxable services which it resells

as exempt occasional sales.

A barber or beauty shop qualifies for the occasional sale

exemption if:

a. It does not hold and is not required to hold a Wis-

consin seller’s permit, and

b. It meets either Condition 1 or Condition 2 (below).

Condition 1 - Its “taxable sales” of tangible per-

sonal property and taxable services are less than

$1,000 during the calendar year.

Note: “Taxable sales” means total sales (line 1 of

Form ST-12, Wisconsin Sales and Use Tax Return,

less allowable deductions. Allowable deductions in-

clude amounts properly deducted on lines 2 through

5 of the Form ST-12 (for example, resale, exemp-

tion certificate sales). Allowable deductions do not

include the deduction for “tax paid purchases re-

sold,” which is claimed on line 5 of Form ST-12.

Example: Barber Shop does not hold a Wisconsin

seller’s permit. Barber Shop sells shampoo and

brushes during the year totaling $1,200 in sales.

Valid, properly completed exemption certificates

were provided to Barber Shop for $300 of these

sales. Barber Shop did not sell any other tangible

personal property or taxable services during the

year.

Barber Shop’s sales of shampoo and brushes quali-

fy for the occasional sale exemption because Barber

Shop’s “taxable sales” were less than $1,000 (that

is, $1,200 - $300 = $900). Note: Since Barber

Shop’s sales of shampoo and brushes qualify for the

occasional sale exemption, Barber Shop is required

to pay Wisconsin sales or use tax on its purchase

price of the shampoo and brushes it sells.

Condition 2 - Its “taxable sales” of tangible per-

sonal property and taxable services are $1,000 or

more during the calendar year, but (a) its sales of

such property and services are isolated and sporadic

and (b) the facts and circumstances support the in-

ference that the barber or beauty shop is not

pursuing a business or part-time business as a ven-

dor of tangible personal property or taxable

services.

Example: Beauty Shop does not hold a seller’s

permit. Beauty Shop sells one piece of used equip-

ment for $10,000. Beauty Shop makes no other

sales of tangible personal property or taxable ser-

vices during the calendar year.

Although Beauty Shop’s taxable sales are more

than $1,000, its sales are still exempt from Wiscon-

sin sales and use tax because (a) the sales occur on

an isolated and sporadic basis (for example, only

one taxable sale in the year) and (b) the facts and

circumstances support the inference that Beauty

Shop is not pursuing a business or part-time busi-

ness as a vendor of personal property or taxable

services (for example, Beauty Shop makes no other

sales of tangible personal property or taxable ser-

vices).

Note: If a barber or beauty shop has a question as to

whether its sales qualify for the occasional sale ex-

emption, it should write to the Wisconsin

Department of Revenue, Mail Stop 5-77, P.O. Box

8949, Madison, WI 53708-8949 or email the de-

partment at DORSalesa[email protected]i.gov.

V. SPECIAL SITUATIONS

A. Wigs and Hairpieces

There is an exemption from Wisconsin sales and

use taxes for the sales of prosthetic devices that are

used for a human being. Sales of wigs or hairpieces

that meet the definition of a “prosthetic device” are

exempt from Wisconsin sales and use tax. The ex-

emption includes accessories for exempt prosthetic

devices.

“Prosthetic device” is defined to mean a device, in-

cluding the repair parts and replacement parts for

the device, that is placed in or worn on the body to

artificially replace a missing portion of the body; to

prevent or correct a physical deformity or malfunc-

tion; or to support a weak or deformed portion of

the body.

Publication 225

If the wig or hairpiece replaces missing hair, the

sale is exempt. However, if the wig or hairpiece is

sold as a cosmetic accessory, the sale is subject to

Wisconsin sales or use tax. For example, the sale of

a clip-in hair extension is taxable.

If a beauty or barber shop performs a normally tax-

able service (e.g., cleaning a wig) on an “exempt

wig or hairpiece,” the charge by the beauty or bar-

ber shop is not subject to Wisconsin sales and use

tax.

Example 1: Company sells a wig to a customer

who is undergoing chemotherapy, which causes

hair loss. Since the wig is being purchased by the

customer to replace missing hair, the wig is exempt

from sales or use tax. The services of cleaning and

repairing the wig are also not subject to Wisconsin

sales or use tax.

Example 2: Company sells manufactured wigs and

hairpieces. Customer purchases a wig to wear as

part of a costume. Since the wig is not replacing

missing hair, it does not meet the definition of a

prosthetic device and the sale is subject to Wiscon-

sin sales or use tax. Additionally, any services

performed on the wig will also be subject to tax.

B. Leasing Chairs and Floor Space Rental

If a barber or beauty shop leases both (1) a barber

or beauty shop chair attached to the building floor

or walls (real property) and (2) floor space, the

charge for both the chair and floor space is not sub-

ject to Wisconsin sales or use tax. The barber or

beauty shop is liable for sales or use tax on its pur-

chase of the chair.

However, if the barber or beauty shop leases the

chair only and is not the lessor of the floor space,

the charge for the chair lease or rental is subject to

tax. The rental of equipment that is not affixed to

real property (e.g., hair dryer, broom) is subject to

sales and use tax. If the barber or beauty shop’s on-

ly use of the chair is to rent it to others for a fee, the

barber or beauty shop may purchase the chair with-

out tax for resale.

Example 1: Joe owns Barber Shop. Although Bar-

ber Shop has three barber chairs, Joe only uses one

chair to cut hair. Joe rents the other two chairs and

floor space to other barbers, Pete and Frank. As-

suming that the barber chairs are attached to the

walls or floor of the shop, Joe’s rental charges to

Pete and Frank for the floor space and chairs are not

subject to sales or use tax.

Note: If the barber chairs are not attached to the re-

al property, Joe’s charge for the chair rental is

subject to Wisconsin sales tax. The charge for the

floor space rental is not taxable.

Example 2: Beauty Shop leases floor space to four

beauticians. Each beautician rents a chair from

Chair Rental Center that is placed in Beauty Shop.

Since Beauty Shop is leasing the floor space only,

Beauty Shop’s charges to the beauticians are not

subject to tax. Chair Rental Center’s charges for the

rental of the chairs are subject to Wisconsin sales or

use tax. If Chair Rental Center does not charge the

beauticians sales tax on the chair rentals, each beau-

tician is liable for use tax on the charge for renting

the chair.

Example 3: Barber Shop leases to Barber Fred both

floor space and a barber chair attached to the floor

of the shop. Barber Fred also may use Barber

Shop’s other equipment (e.g., hair dryers, broom,

scissors) for no additional fee. Barber Fred receives

no discount if he does not use the other equipment.

Barber Shop’s charges to Barber Fred are not sub-

ject to tax. Barber Fred is not considered to be

renting the equipment. No taxable amount should

be allocated to the equipment.

Note: If Barber Fred could receive a discount if he

chose not to use Barber Shop’s equipment, a taxa-

ble amount must be allocated for the rental of the

equipment to Barber Fred.

C. Sales of Business Assets

1. Selling Business Assets While Continuing

Business

a. Beauty or barber shop holds or is required

to hold a seller’s permit

Sales of business assets (e.g., tangible per-

sonal property such as chairs and

equipment) are taxable if the barber or

beauty shop holds or is required to hold a

seller’s permit.

Barber and Beauty Shops - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

Example: Beauty Shop, which holds a

seller’s permit, cuts hair and sells hair care

products and accessories. Beauty Shop

sells two display cases for $150. The sale

of the display cases is taxable.

b. Beauty or barber shop does not hold and is

not required to hold a seller’s permit

Infrequent or sporadic sales of business as-

sets are not taxable if the barber or beauty

shop does not hold and is not required to

hold a seller’s permit.

Example: Barber Shop cuts hair. Barber

Shop does not hold and is not required to

hold a Wisconsin seller’s permit. Every

five years, Barber Shop replaces all of its

old barber chairs with new chairs. Barber

Shop’s sale of the old chairs is not taxable

because Barber Shop does not hold and is

not required to hold a seller’s permit. Its

sales of tangible personal property are iso-

lated and sporadic.

2. Selling Business Assets After Ceasing Business

A beauty or barber shop’s sales of tangible per-

sonal property (other than inventory held for

sale) after it has ceased actively operating its

business at that location are not taxable. It does

not matter that the beauty or barber shop holds

or is required to hold a seller’s permit for other

locations.

Example: Beauty Shop, which held a Wiscon-

sin seller’s permit, terminated its business

activities on June 28, 2015. In July 2015, Beau-

ty Shop sold its business equipment and

inventory. Since it had terminated its business

activities before selling the equipment, the sale

of its business equipment is not subject to Wis-

consin sales or use tax. Sales of inventory are

subject to Wisconsin sales or use tax unless an

exemption applies (e.g., resale).

D. Furnishing Alcohol Beverages With Services

Some barber and beauty shops serve alcohol bever-

ages, such as beer or wine, to their customers. The

sale of alcohol beverages is subject to Wisconsin

sales tax.

If the barber or beauty shop gives away the alcohol

beverages, rather than selling them, the barber or

beauty shop must pay sales or use tax on its pur-

chase of the alcohol beverages.

CAUTION: It is illegal for a barber or beauty

shop to sell or give away alcohol beverages to

customers if the premises does not hold a retail al-

cohol beverage license. The barber or beauty shop

must purchase alcohol beverages from beer or liq-

uor wholesalers, not from other retailers. No

licensed premise may be open for business unless

there is on the premise the licensee, agent named on

the license, or a person who has an operator's li-

cense. The penalty is a fine of not more than

$10,000 or imprisonment for not more than nine

months, or both. See Alcohol Beverage Laws for

Retailers Licensee Responsibilities Common Ques-

tions, and Publication 302, Wisconsin Alcohol

Beverage and Tobacco Laws for Retailers, or con-

tact your local authority or the department's alcohol

and tobacco enforcement unit at DORAlco-

hol&TobaccoEnforcement@revenue.wi.gov to

ensure that you are not in violation of any laws re-

lating to the furnishing of alcohol beverages.

VI. OBTAINING A SELLER’S PERMIT

A barber or beauty shop may apply for a seller’s permit

using one of the following methods:

• Use the Department of Revenue’s online Business

Tax Registration Process to submit the application

electronically.

• Complete Form BTR-101, Application for Business

Tax Registration, and mail it to the Department of

Revenue. Keep a copy of the completed application

for your records.

VII. FILING RETURNS

A beauty or barber shop that has a seller’s permit must

file a return for each “reporting period,” even if no tax

is due for that period. Its “reporting period” will be ei-

ther monthly, quarterly, or annually. For example, if a

beauty or barber shop’s reporting period is monthly, it

must file a return for each month of the year, regardless

of whether any tax is due for the month.

Publication 225

Generally, a seller’s reporting period will be quarterly,

unless the Department of Revenue notifies it in writing

that its returns must be filed monthly or annually.

Wisconsin sales and use tax returns must be filed using

one of the electronic filing methods listed below. A

seller that is unable to file electronically may request a

waiver from the Department of Revenue. A waiver will

be granted if the requirement to file electronically caus-

es an undue hardship. An example of an undue hardship

is the onset of a disabling illness or injury.

Your request for a waiver must be in writing. The

request should indicate the business name, tax account

number, and the reason why your sales and use

tax returns cannot be electronically filed. Requests

can be made by email at DORWaiverRe-

[email protected].gov; faxed to (608) 267-1030; or

mailed to Wisconsin Department of Revenue, Mandate

Waiver Request, Mail Stop 5-77, P.O. Box 8949, Madi-

son, WI 53708-8949.

Additional information is available at reve-

nue.wi.gov/eserv/rule.html#sales or you may contact

the department by mail or email at DOR-

SalesandUs[email protected].gov or by telephone at

(608) 266-2776.

If you have been granted a waiver, a return will be

mailed to you shortly before the end of each reporting

period. If you do not receive your return within 15 days

after the end of the reporting period, phone the Depart-

ment of Revenue at (608) 266-2776.

The Department of Revenue currently has three options

available for electronic filing of sales and use tax re-

turns:

1. My Tax Account

My Tax Account is a free, secure online application

that allows you to file and pay your sales and use

taxes electronically. It performs the necessary com-

putations of tax based on information that you enter

and allows you to make your tax payment via elec-

tronic funds transfer, credit card or paper check. My

Tax Account also allows you to:

• View business tax filing and payment history

and identify any tax periods that need attention.

• Change your address, obtain an extension to file

a return or inactivate your account.

• File a buyer’s claim for refund of sales tax paid

to a seller in error.

• Appeal adjustment notices.

To use My Tax Account, you must obtain a logon

ID and password from the Department of Revenue.

Go to the My Tax Account Common Questions on

the Department of Revenue’s website for more in-

formation, including how to obtain your logon ID

and password.

2. Sales TeleFile

A Wisconsin sales and use tax return can be filed

with any touch-tone telephone. This program ac-

cepts three payment types: Direct withdrawal from

your checking or savings account; credit card; or

paper check or money order. To use TeleFile, a

seller must obtain a Sales TeleFile Worksheet and

Payment Voucher. When you have completed the

worksheet, call (608) 261-5340 in Madison or

(414) 227-3895 in Milwaukee to actually file a re-

turn.

3. eFile Transmission

This program is a service for taxpayers using ap-

proved private vendors’ software or who have the

technical expertise to create a file in XML format.

eFile transmission places return data into a file for-

mat that can be directly processed into the

Department of Revenue system. Using secure

transmission over the Internet you can submit a

payment at the same time that you file your return

using ACH debit or ACH credit. You will receive

an email acknowledgement to confirm receipt of a

successful file transmission.

4. Questions?

More information on all of the above services can

be found under the “Businesses” or “Online Ser-

vices” sections of the Department of Revenue

website. If you have questions about electronic

filing or payments, contact the department by writ-

ing to Wisconsin Department of Revenue,

Electronic Funds Transfer Assistance, Mail

Stop 3-80, P.O. Box 8949, Madison, WI 53708-

8949; calling (608) 266-2776; or emailing at DOR-

SalesandUse@revenue.wi.gov.

Barber and Beauty Shops - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

VIII. QUESTIONS?

If you have a question about sales and use taxes, email,

write, or call the department.

Write . . . Wisconsin Department of Revenue

Mail Stop 5-77

P.O. Box 8949

Madison, WI 53708-8949

Telephone . . . (608) 266-2776

Fax . . . (608) 267-1030

Email . . . DORSalesandUse@revenue.wi.gov

Visit our website . . . revenue.wi.gov

You may also contact any of the Department of Reve-

nue offices. See the department's website for a listing of

offices and their current hours.