RATE OF SALES TAX:
4.00%
LOCAL & COUNTY MAXIMUM RATES:
2.00%
What are the taxable goods and services?
The first step in sales tax compliance is determining if the items or services your firm offers are taxable in Wyoming.
Traditional Products and Services
Physical property, such as furniture, household appliances, and automobiles, is subject to Wyoming sales tax.
Prescription drugs, food, and fuel are all tax-free purchases.
Some Wyoming services are subject to sales tax. View the “What is Taxable?” section beginning on page 13 of Wyoming’s Vendor Manual for a comprehensive list of everything taxable in Wyoming.
Digital Products and Services
A digital item or service is anything that is supplied electronically, such as a music downloaded from iTunes or a movie bought from Amazon.
Wyoming law mandates companies to collect sales tax on digital products and services.
How to Apply for Wyoming Sales Tax
If you have concluded that you must charge sales tax on part or all of the products and services that your company sells, the next step is to apply for a seller’s licence.
This enables your company to collect sales tax on behalf of the municipal and state governments.
You will need the following information to register:
Personal identifying information (SSN, address, etc.)
Identification information for a business (EIN, address, etc.)
Wyoming’s initial selling date
Some details about the products you want to sell
A Resale Certificate might help you save money.
When acquiring items for resale, your firm does not have to pay sales tax if you obtain a resale certificate, also known as a reseller’s permit.
Sales Tax Collection
After obtaining your seller’s licence and starting your company, you’ll need to figure out how much sales tax to charge various consumers. It is critical for company owners to collect the right rate of sales tax to avoid penalties and the danger of expensive audits.
When computing sales tax, consider the following types of transactions:
Store Sales Shipping Within-State Sales Outside-State Sales
Retail Sales
For conventional company owners who sell products or services on-site, calculating sales tax is simple: all sales are taxed at the rate determined by the store’s location.
Here’s an illustration of how this situation may look:
In Cheyenne, Wyoming, Mary owns and operates a bookshop. Because books are taxable in Wyoming, Mary charges her clients a flat-rate sales tax of 6.00% on all purchases. This includes Wyoming’s 4.00% sales tax and Laramie County’s 2.00% sales tax.
Sales inside the state
Wyoming has a sales tax regime known as a destination-based sales tax. This implies that long-distance transactions inside Wyoming are taxed based on the buyer’s address. This regulation applies to sales taxes levied by the state, county, and city.
Consider the following scenario:
Destination***
Steve operates his own eBay electronics company from his home in Newcastle, Wyoming. A buyer from Thermopolis discovers Steve’s eBay website and buys a $350 set of headphones. Steve calculates the sales tax for this transaction using Wyoming State’s 4.0% tax rate plus Hot Springs County’s 1.0% tax rate. As a result, the total amount of sales tax is $17.50.
Out-of-State Purchases
Wyoming firms must only pay sales tax on out-of-state sales if they have a presence in other states.
Nexus indicates that the company has a physical presence in another state.
Common nexus types include:
A physical place, such as an office, retail shop, or warehouse.
An employee who works from home or as a roaming sales representative.
An affiliate marketer
Dropshipping from a third-party vendor.
A temporary physical site, such as a festival or fair booth.
Submit Your Sales Tax Return
You’re ready to submit your sales tax return now that you’ve obtained your Wyoming seller’s permit and understand how to charge the correct amount of sales tax to all of your customers. You avoid penalties and fines, be sure to meet all filing dates.
How to File a Claim
Businesses in Wyoming are required to file sales tax forms and make sales tax payments online.
How Frequently Should You File?
The frequency with which you must submit is determined by the total amount of sales tax collected by your firm.
Annual filing: If your company receives less than $50 in sales tax each month, you must submit returns on an annual basis.
Quarterly filing: If your company receives between $50.00 and $150.00 in sales tax each month, you need submit quarterly reports.
Monthly filing: If your company receives more than $150.00 in sales tax each month, you must submit monthly returns.
Deadlines for Filing
Unless it is a weekend or a federal holiday, all Wyoming sales tax return deadlines occur on the last day of the month.
Penalties for Filing Late
Wyoming imposes a late cost of 10% of the entire late sales tax, as well as a $10.00 late fee. You will be charged an extra $25.00 if you do not submit your sales tax return within 30 days of the due date.