Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter X - Administrative Provisions › Section Tax 11.985 - Bundled transactions

Current through June 24, 2024
(1) DEFINITIONS. In this section:
(a)
1.
				"Bundled transaction" means the retail sale of 2 or more products, not
				including real property and services to real property, if the products are
				distinct and identifiable products and sold for one nonitemized
				price.
2. "Bundled transaction"
				does not include any of the following:
a. The
				sale of any products for which the sales price varies or is negotiable based on
				the purchaser's selection of the products included in the transaction.
Example: Retailer A enters into a contract with Customer B to
				  provide various information technology services. Customer B selects the
				  information technology services it wants from Retailer A. Through negotiation,
				  Retailer A and Customer B agree on a price based on the services selected and
				  Retailer A bills Customer B one nonitemized price for all of the services.
				  Since the price was based on the products selected by Customer B, the
				  transaction is not a bundled transaction.
b. The retail sale of tangible personal
				property and a service, if the tangible personal property is essential to the
				use of the service, and provided exclusively in connection with the service,
				and if the true object of the transaction is the service. The Wisconsin sales
				and use tax treatment of this transaction would follow the tax treatment of the
				service provided.
c. The retail
				sale of a service and items, property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., if such items, property, or
				goods are essential to the use of the service, and provided exclusively in
				connection with the service, and if the true object of the transaction is the
				service. The Wisconsin sales and use tax treatment of this transaction would
				follow the tax treatment of the service provided.
d. The retail sale of services, if one of the
				services is essential to the use or receipt of a second service, and provided
				exclusively in connection with the second service, and if the true object of
				the transaction is the second service. The Wisconsin sales and use tax
				treatment of this transaction would follow the tax treatment of the second
				service.
e. A transaction that
				includes taxable and nontaxable products, if the seller's purchase price or the
				sales price of the taxable products is no greater than 10 percent of the
				seller's total purchase price or sales price of all the bundled products, as
				determined by the seller using either the seller's purchase price or sales
				price, but not a combination of both, or, in the case of a service contract,
				the full term of the service contract.
f. The retail sale of taxable tangible
				personal property, or items, property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., and tangible personal
				property, or items, property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., that is exempt from the taxes
				imposed under this subchapter, if the transaction includes food and food
				ingredients, drugs, durable medical equipment, mobility-enhancing equipment,
				prosthetic devices, or medical supplies and if the seller's purchase price or
				the sales price of the taxable tangible personal property, or items, property,
				or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., is no greater than 50 percent
				of the seller's total purchase price or sales price of all the tangible
				personal property, or items, property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., included in what would
				otherwise be a bundled transaction, as determined by the seller using either
				the seller's purchase price or the sales price, but not a combination of
				both.