Should you collect sales tax in Wyoming?
Sales tax is levied on retail selling tangible personal property to your customers, including leasing or renting tangible property. However, you will collect the sales tax if you determine the nexus in Wyoming. Nexus is the presence that may come physically or economically.
Physical nexus is typically created when your business has a store, warehouse, or any office location in Wyoming. An economic nexus is intertwined when you cross paths with threshold limits as already stipulated by the state. These thresholds are based on revenue.
Let’s explore if your business has a Physical nexus in Wyoming.
A physical nexus is integrated when your business is engaged in the following in Wyoming:
- Selling tangible personal property in Wyoming.
- Maintaining, occupying, or using a place of business or an office in Wyoming.
- Employing or retaining any contractor, including an agent, representative, or salesman, by whatever name called, engaged in activities relating to selling, delivering, installing, or taking business orders.
- Having a stock of goods in Wyoming.
Is it constituting an Economic nexus in Wyoming?
You are required to comply and register under sales tax rules if you are a remote seller (i.e., don’t have a physical presence in the state) and business sales in Wyoming exceed $100,000 during the current or previous calendar year.
How can you Register for Sales tax in Wyoming?
You must apply online for a sales tax permit using the Wyoming Internet filing system. Otherwise, you can also submit the paper licensing application by sending it to their mailing address. A fee of $60 is payable when you apply for a new sales tax permit in the state.
Additionally, before applying for a new tax account number, make sure you have the following information handy:
- FEIN and Social Security numbers of all officers, partners, or owners.
- Address details (physical and mailing).
- Business incorporation dates in Wyoming.
- Contact information.
- Nature of business.
Is your product or services liable to Sales tax in Wyoming?
Tangible Property: Sales tax in Wyoming is imposed primarily on the retail sale of tangible personal property, such as furniture, giftware, toys, etc.
Services: Many services in Wisconsin are subject to sales tax , such as communication services, fabrication, utilities, etc. For more information, click here.
Digital Product: Wyoming charges sales tax on digital products. So, you must collect sales tax if you sell digital products such as software, streaming services, e-books, etc. Here is what Wyoming says about digital transactions.
SAAS: SAAS is software that allows users to connect to the cloud and use it over an internet connection. This is non-taxable in Wyoming, as buyers don’t get tangible property. Review the Wyoming Revenue Department advisory (pg. 17).
The state provides certain exemptions from the sales tax levy, such as food for home consumption, prescription drugs, utilities, etc. Please click here (pg. 14) to see what exemptions are covered.
You can also visit the Wyoming Department of Revenue website for more concise information about taxability in Wyoming.
How should you collect and calculate state taxes in Wyoming?
Collecting and computing accurate sales tax to be remitted to the state may involve stratospheric efforts, especially when you are not in Wyoming, as the sales tax is destination-based in Wyoming, which means you must collect taxes on tangible property sold to buyers based in Wyoming.
Complexities involved where you have a business nexus even if not in the state. Any default may lead to severe concerns, penalties, or fines by the state. That is what TaxDo is here for you! Our specialized sales tax calculator and professional services will simplify your job and lighten your compliance burden.
Wyoming has a base sales tax rate of 4%, followed by the local tax rates, which can be up to 2% based on the cities and municipalities. Further, a few districts also impose a resort district tax of 2%, so the total sales tax rate can go up to 8%. Click here for the city-wise sales tax rates (including local rates).
Below is the simple formula you can use to calculate your sales tax collection on each merchandise sold:
Sales Tax collectible = Sale value * (4% plus local tax rate)
Do you need to collect sales tax on Shipping Charges?
Shipping charges can be delineated separately in the sale invoice raised to the customer or dissipated within the selling price of items sold. There will be no tax applicability if shipping charges are separately stated on the invoice. However, if they are not stated separately, you need to collect the tax on the total sales price, including shipping charges. This link will take you to the official website of Wyoming, where you can check the guidance on freight charges (select “Freight Transportation Charges”).
How should you file sales tax in Wyoming?
There are multiple options available to you for reporting your sales tax.
E-file: You can e-file your return using the Wyoming Internet filing system.
File by Mail or In-person: Complete the appropriate form and mail it to their address or submit it in person.
Use the appropriate form listed below to file your return:
- 41-1 Sales and Use Tax Return for Licensed Vendors (Monthly and Quarterly)
- 42-1 Sales and Use Tax Return for Annual Filers
- 43-1 Sales and Use Tax Return for Occasional Vendors
- 44 Business Consumer Use Tax
- 45-1 Contractor Use Tax Return
Filing frequencies and due dates
You need to file the monthly sales tax due on the last Day of the following month. However, you will get the quarterly filing status when your sales tax collection is between $50 and $150 per month. In that case, file your sales tax by the last date of the month from the end of the relevant quarter.
Additionally, you can file annually if your total sales tax collection is less than $50 monthly. Then, please file your sales tax by January 31 of the following year.
Note: If the due date is a holiday or weekend, the next business day would be considered the final due date. This link (pg. 7) will take you to the official Wyoming government advisory, where you can see what the state says about sales tax filing due dates.
Are there any fines or penalties for default when filing or paying sales tax?
The state levies a penalty of 10% of sales tax subject to a minimum of $25.
However, assigning your tax burden to TaxDo would not result in you paying any penalty or interest. We will adhere to the due dates. Please review the guidelines (pg. 11) the Wyoming Revenue Department issued for penalties and interest.