- The Wisconsin Department of Revenue has issued guidance on calculating sales and use tax in cash transactions amidst penny shortages, emphasizing that the shortage does not alter how sales tax is calculated; retailers must still compute tax to the nearest cent based on established state laws.
- If a retailer chooses to round a cash transaction to the nearest nickel, this rounding must occur after the sales tax has been calculated to the nearest cent, and this guidance applies specifically to sales and use tax, not other business practices.
- The Department invites taxpayer feedback on this guidance and advises businesses to consult legal counsel before changing business practices related to cash transaction rounding.
Source Deloitte
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