In the pursuit of business excellence in a rapidly changing world, a new paradigm is reshaping the way organizations approach learning and...
Wyoming Sales Tax in a Word
Navigating the rugged terrain of Wyoming sales tax can feel like herding cattle on a vast Wyoming ranch—daunting, but achievable with the right approach. Whether you're trying to figure out if you have nexus in Wyoming, registering for sales tax, collecting, filing, or paying sales taxes, or even looking to avoid common mistakes when filing your returns, this guide has you covered. So, saddle up and join us on this trail ride as we break down the essentials of Wyoming sales tax to help you conquer it like a seasoned wrangler.
Table of Contents
Wyoming Sales Tax Contacts
Navigating the Wyoming sales tax landscape can sometimes feel as challenging as finding your way around Yellowstone without a map. But don't worry—we're here to help guide you to the right sources of information.
Who manages Wyoming sales tax and what is their contact information?
The Wyoming Department of Revenue is the official body that manages sales tax in the state, acting as your trusty guide through the wilds of Wyoming sales tax rules and regulations.
Here's the contact information you need:
Wyoming Department of Revenue
122 West 25th Street, Herschler Building
Cheyenne, WY 82002-0110
Whether you're seeking to register for a sales tax permit or have questions about filing your sales tax returns, the Wyoming Department of Revenue is there to assist. It's like having a trusty trail guide when you're exploring the untamed wilderness of sales tax legislation.
Remember, don't hesitate to reach out to us if you're unsure about anything. After all, it's better to ask for directions than to end up lost on the sales tax trail!
Do You Have Nexus in Wyoming?
Before you can tackle the mighty Wyoming sales tax, you need to figure out if you've got what's called a "nexus" in Wyoming. Nexus is a fancy way of saying "business presence," and it's what determines whether or not you're required to collect and pay sales tax in the Cowboy State.
What Creates Sales Tax Nexus in Wyoming?
There are several routes to establishing nexus in Wyoming, much like how there are many trails leading to the stunning vistas of the Grand Tetons.
Let's explore them one by one...
What creates physical nexus in the state of Wyoming?
Physical nexus in the state of Wyoming is created when a seller has a physical presence in the state, such as a warehouse or office. The Wyoming Department of Revenue has established the following activities that create physical nexus:
Having an office, distribution house, sales house, warehouse or other place of business in Wyoming.
Having employees operating or soliciting sales or advertising within the state under the authority of the vendor or its subsidiary, regardless of whether the place of business or agent is located in the state permanently or temporarily.
Having representatives in the state performing warranty repairs.
If a seller engages in any of these activities, they will be considered to have physical nexus in Wyoming and will be required to collect and remit Wyoming sales tax on all sales that are made to customers in the state.
What creates economic nexus in the state of Wyoming?
Economic nexus in the state of Wyoming is created when a seller has a certain amount of economic activity in the state, such as having sales or customers in the state. The Wyoming Department of Revenue has established the following thresholds for economic nexus:
$100,000 in gross sales or
200 or more separate transactions for delivery into the state in the current or immediately preceding calendar year.
If a seller meets either of these thresholds, they will be considered to have economic nexus in Wyoming and will be required to collect and remit Wyoming sales tax on all sales that are made to customers in the state.
Economic nexus is different from physical nexus. Physical nexus is created when a seller has a physical presence in a state, such as a warehouse or office. Economic nexus is created when a seller has a certain amount of economic activity in a state, regardless of whether the seller has any physical presence in the state.
If you are an out-of-state seller that does business in Wyoming, it is important to understand the state's economic nexus rules so that you can comply with all applicable requirements.
Here are some examples of activities that could create economic nexus in Wyoming:
An out-of-state seller sells $100,000 worth of products to customers in Wyoming during the current or previous calendar year.
An out-of-state seller has 200 or more separate transactions for delivery into Wyoming during the current or previous calendar year.
What creates affiliate nexus in the state of Wyoming?
Affiliate nexus in the state of Wyoming is created when an out-of-state seller has a subsidiary, affiliate, or other related party in Wyoming that performs certain activities on behalf of the seller.
These activities include:
Advertising or promoting the seller's products or services in Wyoming.
Selling the seller's products or services in Wyoming.
Soliciting sales of the seller's products or services in Wyoming.
If an out-of-state seller has an affiliate in Wyoming that performs any of these activities, the seller will be considered to have affiliate nexus in the state and will be required to collect and remit Wyoming sales tax on all sales that are made through the affiliate.
Affiliate nexus is different from economic nexus. Economic nexus is created when a seller has a certain amount of economic activity in a state, such as having sales or customers in the state. Affiliate nexus is created when a seller has a relationship with another business in the state that performs certain activities on behalf of the seller.
If you are an out-of-state seller that does business in Wyoming, it is important to understand the state's affiliate nexus rules so that you can comply with all applicable requirements.
Here are some examples of activities that could create affiliate nexus in Wyoming:
An out-of-state seller has a subsidiary in Wyoming that operates a website that sells the seller's products.
An out-of-state seller has an affiliate in Wyoming that runs a blog that reviews the seller's products.
An out-of-state seller has an affiliate in Wyoming that uses social media to promote the seller's products.
If you are unsure whether your business has affiliate nexus in Wyoming, you should consult with a tax advisor.
What creates click-through nexus in the state of Wyoming?
No, Wyoming does not have click-through nexus. As of July 2023, the only way for an out-of-state seller to establish sales tax nexus in Wyoming is through economic nexus or affiliate nexus. Economic nexus is met if the seller has more than $100,000 in gross sales or 200 transactions in the state during the current or previous calendar year. Affiliate nexus is met if the seller has an agreement with a person or business in Wyoming to refer potential customers to the seller's website.
Click-through nexus is a relatively new concept, and only a few states have enacted laws that specifically address it. Wyoming is not one of those states. However, it is possible that Wyoming could enact a click-through nexus law in the future. If you are an out-of-state seller who does business in Wyoming, it is important to stay up-to-date on the state's sales tax laws so that you can comply with all applicable requirements.
What creates marketplace nexus in the state of Wyoming?
Marketplace nexus in the state of Wyoming is created when a marketplace facilitator has either:
$100,000 in gross sales or 200 or more separate transactions for delivery into the state in the current or immediately preceding calendar year.
Has physical presence in Wyoming, such as a warehouse or office.
Marketplace facilitators are required to collect and remit Wyoming sales tax on all sales that are made or facilitated through their platform, regardless of whether the seller has a Wyoming sales tax permit or otherwise would have been required to collect sales tax if the sale had not been facilitated by the marketplace facilitator.
For example, if an out-of-state seller sells a product on Amazon and the product is delivered to a customer in Wyoming, Amazon is required to collect and remit Wyoming sales tax on the sale, even if the seller does not have a Wyoming sales tax permit.
Marketplace nexus is different from economic nexus. Economic nexus is created when a seller has a certain amount of economic activity in a state, such as having sales or customers in the state. Marketplace nexus is created when a seller uses a marketplace facilitator to sell products in a state, regardless of whether the seller has any other economic activity in the state.
If you are a marketplace facilitator that sells products in Wyoming, it is important to understand the state's marketplace nexus rules so that you can comply with all applicable requirements.
Does Wyoming have use tax laws?
Just as Wyoming has its surprising Devil's Tower, it also has use tax laws that often catch businesses off guard. Use tax is paid by the buyer on taxable items used in Wyoming when the seller did not collect sales tax. So yes, if you're selling to customers in Wyoming, you might need to consider use tax.
Remember, the Wyoming sales tax landscape can be as challenging to navigate as a Wyoming winter. When in doubt, it's always best to seek professional advice to ensure you're on the right path.
Looking for a refresher on use tax?
Check out our sales tax vs use tax blog here
Wyoming Sales Tax Registration
Setting up a Wyoming sales tax registration is a crucial part of doing business in the Equality State. It's a bit like getting a fishing license; you need it before you can start reeling in those sales!
How to Register for Sales Tax in Wyoming
Registering for sales tax in Wyoming is as straightforward as saddling up a horse for a pleasant ride through the wide-open plains. Here's a step-by-step guide to get you started:
Gather Your Information: Before you mosey on over to the Wyoming Department of Revenue's website, make sure you have all the necessary information at your fingertips. This includes your business name, address, and contact information, your Social Security Number or Federal Employer Identification Number (EIN), and the details of your business entity (like whether you're a sole proprietor, partnership, corporation, etc.).
Visit the Wyoming Internet Filing System for Business (WYIFS): Head over to the WYIFS website to begin the registration process. It's like your own personal outpost on the Wyoming sales tax frontier!
Complete the Application: Follow the prompts to complete your sales tax registration. Much like a cowboy follows the stars, the online system will guide you through each step of the process.
Submit and Wait for Confirmation: Once you've filled out all the necessary information, click the submit button. The Wyoming Department of Revenue will then review your application. It may take a little while, so be patient—much like waiting for a Wyoming sunset, it's worth it in the end.
Receive Your Sales Tax License: Upon approval, you'll receive your Wyoming Sales Tax License. This is your golden ticket to doing business in Wyoming! Make sure to display it prominently at your place of business.
How Much Does it Cost to Register for a Wyoming Sales Tax License?
Registering for a Wyoming Sales Tax License is as free as a wild mustang galloping across the open prairies of Wyoming. There is no charge to apply for or maintain a sales tax license in the state.
Do I Need a Federal Tax ID Number or EIN to Register for a Wyoming Sales Tax License?
Yes, you do. It's like needing a lasso to wrangle cattle; an EIN is an essential tool for your business. If you're a sole proprietor, you can use your Social Security Number instead.
Which Agencies in Wyoming Might I Need to Register With Additionally?
While the Wyoming Department of Revenue is your go-to agency for sales tax matters, there are a few other agencies you might need to connect with when setting up or running your business. Think of these agencies as your friendly town folk helping you while you set up shop in this business frontier.
Wyoming Secretary of State: Just starting your business journey? You'll need to mosey on over to the Wyoming Secretary of State's office. This is where you'll file your business formation documents and register your business name. It's like claiming your plot of land in the Wild West.
Wyoming Department of Workforce Services: If you plan on hiring employees, you'll need to register with the Wyoming Department of Workforce Services. They handle matters related to unemployment insurance tax and workers' compensation. It's like ensuring your ranch hands are well taken care of.
Wyoming Business Council: While not a regulatory agency, the Wyoming Business Council is a valuable resource for businesses. They offer several grant and loan programs to help businesses thrive. It's like having a good neighbor ready to lend a hand when you need it.
City and County Agencies: Depending on your business location and type, you may also need to register with local city and county agencies for permits and licenses. It's like having the right keys to open your storefront.
Wyoming Department of Environmental Quality: If your business involves any activities that could impact the environment, such as manufacturing, you may need to register with the Wyoming Department of Environmental Quality. It's like making sure your business doesn’t leave a mess on the beautiful Wyoming landscape.
Remember, navigating these agencies and fulfilling your responsibilities is an essential part of maintaining a successful business. It's the harmonious interplay of all these elements that make up the grand symphony of entrepreneurship. So, let's saddle up and ride out to register!
Collecting Sales Tax in Wyoming
Once you've established your presence in the Cowboy State, it's time to saddle up for the task of collecting sales tax. But don't worry, we're here to be your trusty sidekick in this venture, helping you understand the lay of the land and ensuring you're prepared for the journey.
Is Wyoming an Origin or Destination Sales Tax State?
Wyoming follows the "destination-based" sales tax system, meaning that sales tax is based on the location of the buyer, not the seller. Think of it like this: if you're shipping goods, the sales tax you collect is based on your customer's 'destination' rather than your 'origin'.
What Sales are Subject to Sales Tax in Wyoming?
Sales tax in Wyoming is a bit like a rodeo—it encompasses a wide range of activities. Generally, the sale, lease, or rental of tangible personal property and certain services are subject to sales tax. This includes sales of items like furniture, electronics, and appliances, as well as services such as hotel accommodations and certain types of labor.
Is Software as a Service (SaaS) taxed in Wyoming?
No, Generally, Wyoming does not impose sales tax on Software-as-a-Service (SaaS).
What's the reason Wyoming doesn't charge sales tax on Software-as-a-Service (SaaS)?
In the Cowboy State, Software-as-a-Service (SaaS) typically doesn't get roped into the sales tax corral as long as no tangible personal property (like a CD-ROM or disk drive) is involved in the transaction. To break it down, Wyoming's stance is that "Services providing a platform for clients to access hosted software via an internet connection, including the common cloud computing service models of Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS), are not subjected to Wyoming sales tax. This is true as long as the customer does not receive any tangible personal property or enumerated service within the provided service.”
Where can I find more information about Wyoming's sales tax stance on Software-as-a-Service (SaaS)?
For a deep dive into the specifics of Wyoming's sales tax policies on Software-as-a-Service, Platform-as-a-Service, and Infrastructure-as-a-Service, check out the Wyoming Computer Sales Services Industry Publication. It's your trusty guide to navigating this particular tax landscape.
What is Exempt from Wyoming Sales Tax?
Just as Wyoming has its tranquil, tax-free open spaces, there are also exemptions from sales tax. These include certain groceries, prescription drugs and medical equipment, and raw materials for manufacturing. In addition, sales to nonprofit organizations, schools, and governments are generally exempt.
Who is Eligible for Wyoming Sales Tax Exemptions?
Eligibility for Wyoming sales tax exemptions is like an invitation to a high-class rodeo—it's not extended to everyone. Generally, tax-exempt entities include nonprofit organizations, schools, and governments. Businesses that purchase goods for resale can also be exempt.
What Should I Do If My Customer is Exempt from Sales Tax in Wyoming?
If your customer is exempt from sales tax—like a cowboy pardoned from a rodeo penalty—you should collect a fully completed exemption certificate and keep it on file. This certificate acts as proof that the transaction was exempt.
What Happens If I Lose a Wyoming Sales Tax Exemption Certificate?
Losing an exemption certificate is similar to misplacing your cowboy hat in the middle of Cheyenne Frontier Days—it's a situation you want to avoid. However, if it happens, ask your customer to provide a new one. Keep a copy for your records to ensure you're covered in case of an audit.
Filing and Paying Sales Taxes in Wyoming
Filing and paying sales taxes in Wyoming is like herding cattle—it might seem daunting at first, but with a bit of know-how and a steady hand, it can be done without a hitch. Let's ride through the process together.
When to File and Pay Sales Tax in Wyoming
The Wyoming Department of Revenue will assign you a filing frequency—monthly, quarterly, or annually—based on the volume of your sales. It's a bit like how a trail boss sets the schedule for a cattle drive. The due date for filing and paying your sales tax is the last day of the month following the reporting period.
The filing frequency and dues dates are as follows:
If you collect more than $150 in sales tax per month, you must file and pay monthly.
Due on the last day of the month following the reporting period.
If you collect between $50 and $150 in sales tax per month, you must file and pay quarterly.
Due on the last day of the month following the end of the quarter.
If you collect less than $50 in sales tax per month, you must file and pay annually.
Due on January last day of the following year.
What if a Wyoming Sales Tax Filing Date Falls on a Weekend or Holiday?
If a filing date falls on a weekend or holiday—like finding a tumbleweed blocking your path—don't fret. The Wyoming Department of Revenue extends the due date to the next business day. So, you can relax and enjoy your weekend or holiday without worrying about your sales tax filing.
How Do I File a Wyoming Sales Tax Return?
Filing a Wyoming sales tax return is like following a well-marked trail. Here's a detailed guide on how to get to your destination:
Gather Your Sales Records: Before you can set out, you'll need all your sales records for the filing period. This includes total sales, taxable sales, and the amount of sales tax collected.
Log in to the Wyoming Internet Filing System for Businesses (WYIFS): Navigate to the WYIFS website, your personal trailhead for the sales tax filing journey. Log in using your credentials.
Choose the Correct Filing Period: Once logged in, select the correct filing period for the sales tax return you're submitting. It's like choosing the right path at a fork in the trail.
Complete Your Sales Tax Return: Follow the prompts to fill out your sales tax return. The online system will guide you through each section, much like a trusty trail guide.
Review Your Return: Before you submit your return, review it carefully like checking your gear before a long ride. Make sure all the information is correct and complete.
Submit Your Return and Pay Your Sales Tax Due: Once you're sure everything is in order, submit your return and pay any sales tax due. And there you have it—you've successfully filed your Wyoming sales tax return!
Remember, it's important to file a return even if you didn't make any sales during the reporting period. It's like checking in with the ranch owner even if you didn't round up any stray cattle.
What are the various penalties that can be assessed for sales tax filing in Wyoming?
Just like there are consequences for skipping a ranch chore, there are penalties for late filing and payment of sales tax in Wyoming. These include a late filing penalty of $25 or 10% of the tax due, whichever is greater, and an interest charge of 1% per month on the unpaid balance.
Does Wyoming offer any sales tax incentives?
Yes, Wyoming does offer sales tax incentives. It's like finding a watering hole in the middle of a long trail ride. These incentives are designed to encourage economic development and include exemptions for manufacturing machinery, agricultural equipment, and energy production.
Remember, filing and paying your sales tax in Wyoming doesn't have to be a rough ride. With the right guidance and a bit of preparation, you can navigate the process with ease. Happy trails!
5 Tips to Avoid Common Mistakes When Filing Wyoming Sales Tax Returns
Navigating the landscape of sales tax returns can sometimes feel like trying to find your way out of a Wyoming snowstorm. But don't fret—here are five tips to help you avoid the most common pitfalls when filing your Wyoming sales tax returns, ensuring your journey is more like a leisurely horseback ride through the plains.
Keep Accurate Records: Keeping accurate and detailed records is like always having a well-maintained map in your saddlebag. Your records should include all your sales transactions, the amount of sales tax collected, and any exempt sales. These records are essential for filling out your sales tax return correctly and could be indispensable if you're ever audited.
Always File a Return, Even If You Had No Sales: Just like how a cowboy wouldn't skip a day of checking on his herd, you must file a return for every filing period, even if you didn't have any sales. Failing to file can lead to penalties, even if no tax is due.
File and Pay On Time: Like getting the cattle to market on time, it's crucial to file and pay your sales tax by the due date to avoid late filing penalties and interest charges. Mark the due dates on your calendar and set reminders, as life on the ranch can sometimes be unpredictable.
Understand Tax Exemptions: Knowing who's exempt from sales tax is like knowing which of your cattle are marked for sale. Certain sales, such as those to nonprofit organizations, schools, and governments, as well as certain items, are exempt from sales tax. Make sure you understand these exemptions to avoid over or under-collecting sales tax.
Use the Wyoming Internet Filing System for Businesses (WYIFS): Using WYIFS to file your sales tax return is like having a trusty horse to carry you through the process. This online system is designed to guide you through each step of the filing process, helping you avoid mistakes.
By following these tips, you can avoid the common mistakes that can turn the task of filing your Wyoming sales tax returns into a wild west adventure. So saddle up, and let's ride this trail together!
And there you have it, folks! Just like a thrilling rodeo, navigating the world of Wyoming sales tax can be a wild ride. But with the right trail map and a trusty guide, even the roughest terrain can be traversed with confidence.
Remember, understanding your obligations, keeping detailed records, filing on time, and knowing the exemptions are the cornerstones of a successful sales tax strategy. It's not always the easiest trail to tread, but with a little perseverance and the right tools, you've got a clear path to success.
We hope you've found these tips and insights helpful. Just like a reliable ranch hand, we're here to support you at every step of your sales tax journey. Whether you're just starting out or an old hand at this, we're committed to helping you navigate the sales tax landscape with ease.
So, saddle up and ride high, knowing you're well-prepared to handle your Wyoming sales tax. And remember, even on the toughest trails, Accountingprose is always here to lend a hand. Happy trails, partners!
Ready to work with a Wyoming sales tax expert?
We've love to work with you!
Have sales tax in more than one state?
Check out All of our Sales Tax Guides
Alaska Sales Tax Guide (N/A)
Montana Sales Tax Guide (NA)
Oregon Sales Tax Guide (N/A)
Delaware Sales Tax Guide (N/A)
New Hampshire Sales Tax Guide (NA)
And don't forget to check out our blog about Economic Nexus, which serves as an invaluable resource for businesses who have sales that are subject to sales tax.
This blog is for informational purposes only and the information is accurate as of 2023-06-19. If you want legal advice on sales tax law for your business, please contact a State and Local Tax (SALT) professional. Keep in mind that sales tax regulations and laws are subject to change at any time. While we strive to keep our blog current, this blog possibly may be out of date by the time you review it.
As a small business owner, managing sales tax can be a complex and time-consuming task. However, with the updated integration between Xero and...