Wisconsin – Exemption Certificates Issued After a Sale is Reported

SALT Report 2675 – Wisconsin’s 2013-2015 budget bill creates provisions for claiming a deduction on a sales tax return in instances where an exemption certificate is issued after a sale has been reported as taxable.

Specifically, if a retailer receives an exemption certificate after reporting a sale covered by the exemption certificate as taxable, the retailer may claim a deduction for the sales price or purchase price previously reported if the following conditions are met:

  • The retailer has paid the tax to the Department of Revenue, and
  • The retailer has returned, either in cash or in credit, all tax previously paid by the buyer, to the buyer

The deduction should be claimed on the return filed for the reporting period in which the exemption certificate is received.  However, this provision does not apply if the reporting period in which the exemption certificate is received is in a taxable year that follows the taxable year in which the sale covered by the exemption certificate occurred.

For Further Information

Wisconsin Department of Revenue – Act 20, Assembly Bill 40, Laws 2013