If you run an Ecommerce or CPG business in Wisconsin, securing a Sales and Use Tax Exemption Certificate to claim a resale exemption is a smart way to protect your margins and streamline operations.
This certificate enables you to purchase inventory and raw materials tax-free, helping you lower upfront costs, maintain competitive pricing, and remain compliant with Wisconsin sales tax laws.
Understanding Resale Certificates in Wisconsin
What is a Wisconsin Resale Certificate?
In Wisconsin, a Sales and Use Tax Exemption Certificate (Form S‑211) allows businesses to:
- Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
- Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Wisconsin resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Why do you need a Wisconsin Resale Certificate?
Obtaining a resale certificate in Wisconsin offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
- Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Wisconsin’s sales tax upfront.
- Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Wisconsin market. This can be a crucial advantage, especially in price-sensitive industries.
- Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures that businesses comply with Wisconsin’s sales tax laws and regulations, thereby avoiding penalties.
In Wisconsin, the resale certificate you’ll use is Form S‑211 (Wisconsin Sales and Use Tax Exemption Certificate).
When filling out this form, purchasers must include their Wisconsin seller’s permit number (or, for out‑of‑state buyers, a home state seller’s permit number or written statement if they are not required to hold one).
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
A Wisconsin Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales. A Wisconsin Resale Certificate (Form S‑211) allows you to make tax‑exempt purchases for resale.
To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in Wisconsin?
Businesses actively selling taxable goods can use a Wisconsin resale certificate. You must hold a valid Wisconsin Sales Tax Permit or provide an acceptable out‑of‑state seller’s permit number if you are based elsewhere.
How to Get a Resale Certificate in Wisconsin: A Step-by-Step Guide
Getting a resale certificate in Wisconsin is straightforward, but you must meet a few requirements first.
1. Make Sure You’re Eligible
Your business must sell taxable goods or services and be registered with the Wisconsin Department of Revenue. Only businesses with a valid Wisconsin Sales Tax Permit are eligible to use a resale certificate.
2. Get a Wisconsin Sales Tax Permit
If you don’t already have one, apply for a Wisconsin Sales Tax Permit through the Wisconsin Department of Revenue website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Wisconsin
3. Gather Your Business Information
You’ll need basic business details to complete the resale certificate, including:
- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with Wisconsin (Nexus Start Date), Estimated Monthly Sales in Wisconsin
- NAICS Code
4. Complete Form S-211
Download and fill out the Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211) from the Department of Revenue website. Present this form to your suppliers when making tax‑exempt purchases.
5. Submission
Do not submit the resale certificate to the state. Give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees
There’s no cost to use Form S‑211, but a Wisconsin Sales Tax Permit costs $20. This one‑time fee covers each business location.
7. Keep Your Permit Active
Your resale certificate stays valid only while your Sales Tax Permit is active. Renew your permit as required by the Department of Revenue to maintain your ability to make tax‑exempt purchases.
How to Use a Resale Certificate in Wisconsin
To make tax‑exempt purchases for resale in Wisconsin, you must present a completed Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211) to your supplier at the time of purchase.
Wisconsin also accepts resale certificates from other states, but certain conditions apply:
- Good Faith Acceptance: Vendors in Wisconsin will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
- Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate.
If you are an out‑of‑state buyer, provide your home state’s resale certificate when purchasing from Wisconsin vendors. Always confirm the seller’s policy on accepting out‑of‑state certificates before making a purchase.
For detailed rules, visit the Instructions for Wisconsin Sales and Use Tax Exemption Certificate S-211 and S-211E.
Multi-Jurisdictional Resale Certificates
Multi‑jurisdictional resale certificates make it easier for businesses operating across state lines to claim tax‑exempt purchases without filling out multiple state‑specific forms.
In Wisconsin, two types of multi‑jurisdictional certificates are commonly used:
- Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This widely recognized form is accepted by many states, including Wisconsin, but in Wisconsin, it can only be used to claim a resale exemption. It cannot be used for any other type of exemption. To be valid, the form must include your Wisconsin Sales Tax Permit number and be properly completed. Out-of-state purchasers should include their home state’s registration number.
- Streamlined Sales Tax (SST) Certificate of Exemption: Wisconsin is a member of the Streamlined Sales Tax Governing Board, so it accepts the SST form. Vendors may still request a Wisconsin‑specific resale certificate for documentation.
Responsibilities When Using or Accepting a Wisconsin Resale Certificate
Buyer Responsibilities
If you use a Wisconsin resale certificate, you must ensure that it applies only to goods or services intended for resale. Using it for personal use or operational items, like office equipment, is illegal and can lead to penalties.
- Wisconsin-based buyers: You must provide a properly completed Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211). Include your Wisconsin seller’s permit number and confirm that all purchases listed are for resale.
- Out-of-state buyers: If you don’t hold a Wisconsin seller’s permit, you must provide your home state’s permit number or a signed statement confirming that you are a seller not required to hold a Wisconsin permit. Without this, your certificate will be considered incomplete.
Seller Responsibilities
As a seller in Wisconsin, you share responsibility for ensuring proper use of resale certificates. You must:
- Accept the certificate in good faith: Make sure it appears valid and complete.
- Verify the details: Check that it includes the buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
- Reject invalid certificates: Do not accept a certificate if it’s used for non-resale purchases.
- Keep records for at least 4 years: Retain each certificate as proof of why sales tax wasn’t collected. Wisconsin law requires you to keep these records for four years in case of an audit.
Frequently Asked Questions About the Wisconsin Resale Certificate
Are There Penalties for Misusing a Wisconsin Resale Certificate?
Yes. Misusing a resale certificate, such as using it for personal or non-resale purchases, can result in tax assessments, additional penalties, and legal action. For example, if the Wisconsin Department of Revenue determines there was intent to evade a tax, a penalty of 50% of the tax due may be added.
In addition, a person who misuses a certificate is guilty of a misdemeanor.
Always use Form S‑211 only for legitimate resale purchases.
Does a Wisconsin Resale Certificate Expire?
No. A Wisconsin resale certificate does not expire. Continuous or blanket certificates are valid indefinitely and do not require renewal at any prescribed interval.
However, it is recommended to renew them at reasonable intervals in case of a business change, registration number change, or discontinuance of the specific business claiming the exemption.
The certificate remains valid only while your Wisconsin Seller’s Permit is active. If your permit becomes inactive or revoked, your resale certificate is no longer valid.
How Do I Verify a Resale Certificate in Wisconsin?
To confirm a buyer’s resale certificate:
- Request a completed Form S‑211 from the purchaser.
- Check their Wisconsin Seller’s Permit number (or out‑of‑state equivalent if applicable).
- Verify the number with the Wisconsin Department of Revenue using their Account Number Search Tool or by calling (608) 266‑2776.
How TaxHero Can Help
You don’t have to complicate managing sales tax compliance and resale certificates in Wisconsin. TaxHero simplifies the process, from keeping your Wisconsin Sales Tax Permit active to ensuring you use resale certificates correctly.
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Schedule a Demo to see how TaxHero can streamline your resale certificate in Wisconsin process today!