Wyoming sales tax guide for SaaS businesses

Is SaaS taxable in Wyoming?

Wyoming taxes some specified digital goods, but does not generally tax SaaS.

It’s important for businesses operating in Wyoming to consult with a tax professional to determine their sales tax obligations. Businesses should take a proactive approach to understanding their sales tax obligations to avoid potential penalties and ensure compliance with state regulations.

How to determine if your product is taxable in Wyoming

Because not all types of products and services are subject to sales tax in the state of Wyoming, it’s critical to classify your specific product according to its functionality. Consulting a tax professional can help you determine the right categorization for your product under Wisconsin law.

Additionally, in order for a business to be required to collect and remit sales tax in Wyoming, they must have sales tax nexus within the state. Nexus is typically established through a physical presence or an economic presence.

In Wyoming, nexus can be created by the following:

• Having a physical location in the state.
• Employing residents or maintaining a payroll within the state.
• Storing inventory or utilizing a third-party fulfillment service within the state.
• Exceeding a certain threshold of sales ($100,000) within the state. Wyoming removed its transaction-count threshold in 2024.

Businesses must assess whether they have established a sales tax nexus in Wyoming and, if so, ensure that they are collecting and remitting any applicable sales tax in the state.

Sales tax compliance in Wyoming

To ensure your business remains compliant with Wyoming’s sales tax regulations, consider the following steps:

• Register for a sales tax permit: All businesses with nexus in Wyoming must register for a sales tax permit.
• Collect sales tax: Once you have your sales tax permit, you need to collect the appropriate amount of sales tax on taxable transactions, including any taxable SaaS products and digital goods.
• File sales tax returns: Businesses must file periodic sales tax returns, typically on a monthly, quarterly, or annual basis, depending on the sales volume. When filing the return, you need to report the total sales and taxable sales, as well as the sales tax collected during the reporting period.
• Remit collected sales tax: Along with filing your sales tax return, you must also remit the collected sales tax to the state. Failure to do so could result in penalties and interest charges.

Maintaining sales tax compliance is crucial for avoiding potential fines, penalties, or audits, so it’s essential to remain informed of any changes in the Wyoming sales tax regulations that may impact your SaaS business.