Home : Sales Tax Exemptions and You

Sales Tax Exemption and You


 

DOCUMENTING SALES OF LODGING TO EXEMPT ENTITIES OR THEIR EMPLOYEES

In general, sales of lodging services are subject to room tax.  An exemption applies however, for sales of lodging services to exempt entities that furnish appropriate documentation to the seller.

 

Lodging Service Provider Paid Directly by Exempt Entity

The sale is exempt from sales tax if all of the following three conditions are met:

1. The invoice or billing document is in the name of the exempt entity.

2. The lodging provider receives any of the following from the exempt entity:

  •        A purchase order or similar document.
  •        A fully completed Form S-211 or Form S-211 –SST
  •        The exempt entity’s Wisconsin Certificate of Exempt Status (CES) number which should             be entered on the provider’s copy of the invoice or billing document.

3. The lodging provider keeps a copy of each of the documents indicated to substantiate the                  sale was exempt.

 

Lodging Service Provider Paid by Exempt Entity Employee

The sale is exempt if the following conditions are met:

1.  The employee provides a letter or other document issued by the exempt entity which identifies the employee, states the employee is traveling on business for the entity or organization, and indicates the employee will be reimbursed by the entity or organization for the lodging.

2.  The lodging provider issues the invoice or other billing document for the lodging in the name of the exempt entity.  The billing may also include the employee’s name,

3. The lodging provider receives any of the following from the exempt entity:

  •       A purchase order or similar document.
  •       A fully completed Form S-211 or Form S-211 –SST from the exempt entity.
  •       The exempt entity’s Wisconsin Certificate of Exempt Status (CES) number which should       be entered on the provider’s copy of the invoice or billing document.

4.       The lodging provider keeps a copy of the documents indicated to substantiate the sale was exempt.