Wisconsin Department of Revenue revises sales and use tax guidance for disregarded entities

• The Wisconsin Department of Revenue has published amended guidance for disregarded entities, clarifying their sales and use tax collection and remittance responsibilities, as well as the taxability of asset sales.
• The amended guidance states that if an owner and its disregarded entities collectively engage in business in Wisconsin and meet the economic nexus threshold, both must register, collect, and remit sales and use tax.
• The guidance also clarifies that when a single owner sells 100% of its interest in an LLC to an unrelated entity, the sale is considered an asset sale for tax purposes and is subject to tax unless an exemption, such as the occasional sales exemption, applies.

Source PwC

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