Wisconsin – Taxability of Internet Access Services

SALT Report 1868 – The Wisconsin Department of Revenue issued guidance regarding the taxability of sales of Internet access services.  Although the federal Internet Tax Freedom Act provides a moratorium on the taxation of Internet access services until November 1, 2014, Wisconsin is exempt from the moratorium.  Therefore, Wisconsin sales and use taxes apply to the monthly fees paid by customers to access the Internet.

The tax rate is calculated at the rate that is in effect at the primary place of use.  The Department defines primary place of use as the street address where the customer’s use of the Internet access service primarily occurs, and must be all of the following:

  • The residential street address or the primary business street address of the customer, and
  • Within the licensed service area of the home service provider

The Department also warns that Wisconsin sales or use tax applies to products purchased over the Internet.  If a buyer does not pay tax to the seller on the purchase of a taxable item, the buyer must pay use tax to the Wisconsin Department of Revenue.

For Further Information:

Wisconsin Department of Revenue – Internet Access Services are Taxable in Wisconsin

Wisconsin Use Tax fact sheet