Any business that sells goods or taxable services within the state of Missouri to customers located in Missouri 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 Missouri 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 Missouri 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 Missouri
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Missouri for more than 2 days per calander year (including independent contractors, sales persons, representatives, or agents)
- Your business delivers merchandise in the state of Missouri
- Your business owns real or personal property
- Your business has taxable services in the state of Missouri
What constitutes taxable services in Missouri State?
Most service businesses are not taxable in Missouri. The exceptions would be service business that manufactures, repairs, or sells a product. Additionally, transportation services are taxable.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Missouri?
As a wholesale company conducting business in the state of Missouri, 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?
Shipping and handling charges are generally not taxable if you separate it from the purchase price of the item being sold on the invoice
Is there sales tax on drop shipments in the state of Missouri?
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 Missouri are required to have sales tax added
Are there any exemptions to taxable items sold?
Medical devices, raw materials and machinery, general pollution control equipment, and custom downloadable software are tax exempt
Register for a Missouri sales/use tax number
Missouri state, county, city, & municipal tax rate table