The Wisconsin Department of Revenue posted a notice that states “Tariffs that are imposed directly on an importer and passed on to the importer’s customer in a subsequent sale, are included in the importer’s sales price and subject to Wisconsin sales and use tax.” According to Wisconsin statutes, the charge for the tariff is included in the importer’s sales price even if the importer separately states the tariff amount on invoices to customers. In this case, the tariffs are part of the tax base on which sales and use tax is calculated.
If the importer’s purchase is not exempt, such as through a sale for resale, the tariffs are not included in the importer’s purchase price if the tariffs are legally imposed on the importer and are separately stated on the invoice. Any tariffs paid directly to a customs authority are not included in the importer’s purchase price that’s subject to use tax. (Are Tariff Charges Included in Taxable Sales and Purchase Price? Wisconsin Department of Revenue, April 30, 2019)