“The sales tax for businesses in Wyoming is 4%”

What Does The Wyoming Sales Tax For Businesses Mean?

A sales tax is a fee levied on the sale of certain goods and services and paid to the government (state or local). Wyoming’s general state sales tax was originally enacted in 1935, and the rate has since climbed to 4%. A local sales tax, as well as a special district tax, in addition to the state sales tax, can range from 0% to 2%. Combined sales tax rates in Wyoming currently range from 4% to 6%, depending on the region of the sale.

As a business owner selling taxable goods or services, you represent Wyoming by collecting tax from customers and remitting it to the appropriate tax authority. The Wyoming Department of Revenue is responsible for collecting sales and use taxes (DOR).

The state of Wyoming owns any sales tax received from customers, not you. It is your job to keep track of the taxes you collect to comply with state and municipal regulations. If this is not done, penalties and interest charges may be applied.

How Much Is The Wyoming Sales Tax For Businesses?

Wyoming has a 4 percent statewide sales tax that has been in existence since 1935.

Municipal governments in Wyoming can additionally levy a local-option sales tax, which can range from 0% to 2% across the state, with an average local tax of 1.472 percent (for a total of 5.472 percent when combined with the state sales tax). Wyoming law allows for a maximum local tax rate of 2 percent.

Wyoming Sales Tax RateThreshold Limit
4%$100,000 economic sales threshold limit and 200 transaction threshold limit

Do You Need To Collect Wyoming Sales Tax For Your Ecommerce Business?

If you have a nexus in Wyoming, you must collect sales tax. In terms of nexus, sellers can be physically or economically bound to a state. There must be enough tangible presence in a state for it to be worthwhile to pay sales tax there. It is called the economic nexus when total income or transaction volume reaches a state’s threshold.

Therefore, this is what the Wyoming sales tax for eCommerce businesses is all about. Now the question arises: what types of goods and services are taxable under Wyoming sales tax? Let’s see.

What Types Of Goods and Services Are Taxable Under Wyoming Sales Tax?

The first step in sales tax compliance is determining if the products or services your company offers are taxable in Wyoming.

Traditional Goods and Services

Physical items, such as furniture, home appliances, and automobiles, are all subject to Wyoming sales tax.

Gasoline, groceries, and prescription drugs are all tax-free purchases.

Digital Goods and Services

A digital good or service is anything that is delivered digitally, such as an album downloaded from iTunes or a video purchased from Amazon.

Businesses in Wyoming are required to collect sales tax on the sale of digital goods and services.

Therefore, if you are dealing in any of these goods and services you are subject to pay Wyoming sales tax. Now let’s move on to see the tax collection and tax filing procedure in Wyoming.

Tax Collection

After you receive your seller’s permit and start your business, you will have to decide how much sales tax to charge different clients. To avoid expensive audits and fines, business owners must collect the correct rate of sales tax.

While collecting sales tax in Wyoming, you need to consider the following types of sales:

  • Store Sales- Traditional business owners who sell goods or services on-site must calculate sales tax based on the location of their business.
  • In-state Sales- The state of Wyoming has a sales tax regime known as a destination-based sales tax. This means that long-distance sales in Wyoming are taxed based on the buyer’s address. States, counties, and cities are required to collect sales taxes under this regulation.
  • Out-of-state Sales- Sales tax is only required for out-of-state transactions for businesses with nexus to other states. In this context, a company’s nexus refers to its physical presence in another state.

Tax Filing

You’re ready to file your sales tax return now that you’ve applied for your Wyoming seller’s permit and learned how to charge the correct amount of sales tax to all of your customers. Ensure you meet all filing deadlines to avoid penalties and fines.

Businesses in Wyoming are required to file sales tax forms and make sales tax payments online.

How often do you need to file the Wyoming sales tax?

According to the amount of sales tax your company collects, the frequency with which you must file is determined.

  • Annual filing- If your company receives less than $50 in sales tax per month, you must file returns on an annual basis.
  • Quarterly filing- If your company receives between $50.00 and $150.00 in sales tax per month, you should file sales tax returns quarterly.
  • Monthly filing- If your company collects more than $150.00 in sales tax per month, you must file returns on a monthly basis.

Read More: Kansas Sales Tax 2022 For Businesses: A Complete Guide

What will happen if you don’t file your tax return by the deadline

Filing Deadline

Unless it’s a weekend or a federal holiday, all Wyoming sales tax returns are due on the last day of the month. If it’s a weekend or a federal holiday, the deadline is pushed out to the next working day.

Penalty for Late Filing

Wyoming levies a late fee of 10% of the entire late sales tax, plus a $10.00 late fee. You will also be charged an extra $25.00 if you do not file your sales tax return within 30 days of the due date.

Need Assistance With Wyoming Sales Tax

Please do not hesitate to contact us if you require any assistance with the Wyoming Sales Tax in 2022. FreeCashFlow is a tax and accounting firm based in Los Angeles, California, with over 20 years of experience and the greatest level of honesty. We provide the finest possible assistance with your tax and accounting difficulties.

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