Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter VIII - Service Enterprises › Section Tax 11.67 - Service enterprises

Current through June 24, 2024
(1) GENERAL. When a transaction involves the
				transfer of tangible personal property or items, property, or goods under s.
				77.52(1) (b), (c), or
				(d), Stats., along with the performance of a
				service, and the transaction is neither a bundled transaction, as defined in s.
				Tax 11.985, nor a transaction to which s.
				77.52(2m) (b),
				Stats., applies, the true objective of the purchaser shall determine whether
				the transaction is a sale of tangible personal property or items, property, or
				goods under s. 77.52(1) (b), (c), or
				(d), Stats., or the performance of a service
				with the transfer of the property, item, or good being incidental to the
				performance of the service. If the objective of the purchaser is to obtain the
				personal property, item, or good, a taxable sale of that property, item, or
				good is involved. However, if the objective of the purchaser is to obtain the
				service, a sale of a service is involved even though, as an incidence to the
				service, some tangible personal property or items, property, or goods under s.
				77.52(1) (b), (c), or
				(d), Stats., may be transferred.
Example:
A person performing business advisory,
				  record keeping, payroll, and tax services for small businesses is providing a
				  service even though this person may provide forms and binders without charge as
				  part of the service. The person is the consumer, not the seller, of tangible
				  personal property and items, property, and goods under s.
				  77.52(1) (b), (c), and
				  (d), Stats., furnished as an incidence to the
				  service.
(2) RECEIPTS AND
				PURCHASES OF PERSONS PROVIDING SERVICES.
(a)
				Since persons engaged in the business of furnishing services are consumers, not
				retailers, of the tangible personal property and items, property, and goods
				under s. 77.52(1) (b), (c), and
				(d), Stats., which they use in rendering
				their services, tax applies to the sale of the tangible personal property and
				items, property, and goods under s.
				77.52(1) (b), (c), and
				(d), Stats., to them.
(b) A person who performs a nontaxable
				service in conjunction with the sale of tangible personal property or items,
				property, or goods under s.
				77.52(1) (b), (c), or
				(d), Stats., is a retailer with respect to
				the sale, and the tax applies to the total sales price from the sale without
				any deduction for the work, labor, skill, time spent, or other expense of
				producing the property, item, or good.
(c)
1. If
				there is a single charge for providing both taxable and nontaxable services
				that are not a bundled transaction as defined in s.
				77.51(1f),
				Stats., the entire charge is subject to the tax, unless it is determined by the
				department that another method, such as allocation or primary purpose of the
				transaction, more accurately reflects the tax. If the charges for taxable and
				nontaxable services are separately stated on an invoice, the tax applies only
				to the charge properly attributable to the taxable services, unless it is
				determined by the department that the primary purpose of the transaction method
				for computing the tax more accurately reflects the tax.
2. If there is a single charge for providing
				both taxable and nontaxable services in a transaction that is a bundled
				transaction as defined in s.
				77.51(1f),
				Stats., the entire charge is subject to the tax, except as provided in s.
				77.52(20) (b),
				Stats.