Sales Tax Advisory Network, LLC

Sales of Taxable Products and Services:

• The contractor charges sales tax on its sales price from the retail sale of taxable products and services unless an exemption applies.
  • The term "sales price" also includes other charges made by a contractor which the contractor separately states on their invoices to its customer, such as:
    • Contractor's cost of property
    • Cost of materials used, labor or service cost, transportation to the contractor
    • Taxes imposed on the contractor (with certain exceptions)
    • Services necessary to complete the sale (e.g., general overhead, consulting, installation, trip charge, fuel surcharge)
    • Delivery charges
  • The contractor may purchase without tax, for resale, the tangible personal property that is physically transferred to its customer.

Contractor Providing Real Property Construction Activities:

• The contractor's sale of or service to real property is not taxable.
  • The contractor is the consumer of materials used in making a real property improvement and must pay sales or use tax on its purchase of these materials.

For information on distinguishing between real property and personal property activities, see Part 2 and Appendix A in Wisconsin Department of Revenue Publication 207, Sales and Use Tax Information for Contractors.