Any business that sells goods or taxable services within the state of Mississippi to customers located in Mississippi is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Mississippi must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Mississippi State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Mississippi
- You have employees physically present in Mississippi (including independent contractors, sales persons, representatives, or agents)
- Your business has taxable services in the state of Mississippi
What constitutes taxable services in Mississippi?
The majority of service businesses are not taxable in Mississippi. The exceptions would be service business that manufactures or fabricates a product.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Mississippi?
As a wholesale company conducting business in the state of Mississippi, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Mississippi that are taxable than you would charge sales tax on shipping and handling charges.
Is there sales tax on drop shipments in the state of Mississippi?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Mississippi exempt and therefor are not required to have sales tax added
Are there any exemptions to taxable items sold?
Certain raw materials used in the manufacturing process, medical devices, newspapers, pollution control equipment, and specific prescription medicines are tax exempt
Register for a Mississippi sales/use tax number
Mississippi state, county, city, & municipal tax rate table