Wisconsin Department of Revenue Publication Discusses Taxable Inspection Services

Apr 29th, 2013

The Wisconsin Department of Revenue recently released a tax bulletin that details the difference between taxable inspection services, and non-taxable testing services. Wisconsin does not tax services, unless they are specifically listed as taxable. Inspection services (not including real property inspection) are listed as taxable. Testing services are not.

Inspection services are those that determine whether tangible personal property is functioning properly or is in need of service to correct a malfunction. On the other hand, testing services are those that determine the physical or chemical properties or make-up of tangible personal property.

Tax Bulletin 179, provides examples of different inspection and testing services to illustrate the difference. The Bulletin also notes that the distinction, for tax purposes, is based on the actual service performed and not how they are labeled on the bill, or how either party, seller or purchaser, refers to the service.

Wis. Tax Bull. No. 179 (Dept. of Revenue Apr. 2013).