Products Provided Free of Charge Exempt from Tax in Wisconsin

Friday, September 09, 2011

Beginning September 1, 2011, retailers who provide an item free of charge along with the required purchase of another taxable product may purchase the item to be provided free of charge without tax, as a sale for resale. For example, department store cosmetic counters often provide a free gift to the customer if they purchase a particular item. In this scenario, the free gift may be purchased by the retailer under the resale exemption.

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