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Missouri Sales Tax Guide

By Cristina Garza

đź‘€ Missouri, the "Show Me" state, is the birthplace of such famous icons as Mark Twain, Jon Hamm, and Ellie Kemper. If you’re one of the many proud small business owners who call Missouri home, you’ll obviously need to be sure your business complies with Missouri's sales tax laws. No worries! We have assembled this all-in-one guide for sales tax so that you can meet the sales tax compliance requirements for a small business in Missouri. 

 

After reading this guide, you will have learned:

  • How to be prepared for your call with the Missouri Department of Revenue.
  • How to contact the Missouri Department of Revenue.
  • When to charge sales tax in Missouri.
  • What goods, products, and services are taxable in Missouri.
  • When you establish a sales tax nexus with the state of Missouri, and the nuances of various thresholds.
  • How to register for a sales tax license in Missouri.
  • How to collect sales tax in Missouri.
  • How to file and pay sales tax in Missouri.

If, after reading, you still have any questions to help you determine your tax sales obligations in Missouri and how to fulfill them, we are here for your small business bookkeeping needs! 

 

 


Missouri Sales Tax Contact

Missouri Sales Tax Contacts

 

âś…  Do you need to get in touch with the Missouri Department of Revenue?

âś…  Are you uncertain about whether to visit, call them, or contact them through their website?  

âś… Do you wonder what information you should have ready before you contact them?

 

If you answered “Yes” to any of these questions, please read onward, as we have just the information you need! :)

The Missouri Department of Revenue is reachable by phone at 573-751-2836. 

You can also shoot a message to them via email, or you may visit their singular physical location in Jefferson City. If you are after the fastest response, we suggest you call rather than send a message or visit in person. 

When you do call the Missouri Department of Revenue, you will want to have some information on hand. It will save time to have the following information easily accessible before you call: 

  • Taxpayer Name
  • EIN
  • Sales & Use Tax ID Number

If you are calling on behalf of an individual or a business, or having a third party call on your behalf, you must have a Missouri Power of Attorney (form  2827, PDF) signed before you call or else you will be wasting your time; they can only help if you have a completed form. 

If you have any more questions, please feel free to contact us so we can assist you with your sales tax needs.

 

 


Missouri Sales Tax Registration

Missouri Sales Tax Registration

 

Are you a new business selling tangible property in Missouri? If yes, you are going to want to register your business with the Missouri Department of Revenue so that you can pay your sales tax on time. 

You need not fret as this is a relatively simple process and one for which you’re about to be fully prepared. We are going to outline the steps below so you are totally ready to register for your sales tax license.

 

Here we go! Remember...

Preparation is key. 

Let’s get started!

 

 

How do I register to collect sales tax in Missouri?

You can apply or register for a Missouri sales tax permit by visiting the Missouri Department of Revenue and following the instructions provided.

Missouri will also let you fill out a paper form to register your business (PDF) if you’re into that sort of thing.  

 

 

What information do I need to register for a Missouri sales tax permit?

Great question!

Before you sign up for Missouri sales tax permit you’ll want the following information on hand:

  • Business name
  • Business entity type 
  • Description of business activities
  • Date business activities began or will begin
  • Business address and mailing address
  • Business contact information
  • Associated business entities 
  • NAICS code that best matches the business
  • Federal Employer Identification Number (FEIN)
  • List of business officers, partners, managing members, and/or trustees

Don’t forget! Preparation is key. When you have all this information ready, you can go online and register for your permit at the Missouri Business Tax Registration Application website. 

 

 

How much does it cost to register for a Missouri sales tax permit?

Missouri charges precisely zero dollars and zero cents for a business to register to pay sales tax :) 

 

 

Do I need a Federal Tax ID Number or EIN to register for a Missouri sales tax permit?

Indubitably, yes! You will most assuredly need one, but if you don’t already have one and need to get a new EIN, it’s a painless process. You can register for a Federal EIN right here :). 

 

 

Which agencies in Missouri do I need to additionally register with?

You may need to apply to some of the following agencies: 

You’ll want to give this some thought and do a little research or investigating; since every business is unique, and there are such different rules, regulations, and laws that may apply. 

We suggest contacting the Missouri Department of Revenue to verify which additional government agencies you may be required to register with. 

 

*****

 

Huzzah!!!

You are now prepared to register for your Missouri sales tax permit in Missouri. 

Let’s summarize what we have covered:  

  • Have all the required information easily accessible before registering online.
  • Acquire a tax ID or EIN before registering for a Missouri sales tax permit.
  • Register online at the Missouri Department of Revenue website.
  • Look into what other agencies you may have to additionally register with.

Registering for your Missouri sales tax permit will be stress free as long as you are prepared. We recommend organizing all the essential information in a folder, preferably using a system like Box.com or Dropbox (something we’re happy to handle for our customers). 

 


Missouri Sales Tax FAQ

Missouri Sales Tax FAQ 

 

By now, you may have already contacted the Missouri Department of Revenue and applied for a Missouri sales tax permit. 

Once you have a license to collect and remit sales taxes in Missouri, you will probably be asking yourself two questions: 

  • When do I charge a sales tax in Missouri?
  • What goods and services are subject to sales taxes in Missouri? 

We are going to go over some common questions that our clients have asked. We believe these questions will help you appreciate the nuances of taxable goods so you can be confident in fulfilling your tax obligations. 

Let’s start with the first question…

 

 

What goods and services are considered taxable in Missouri?

The following items are all taxable in the state of Missouri: 

  • Sales of tangible goods at retail.
  • Repairs or alterations of tangible personal property.
  • Property rentals, leases, or licenses [e.g. commercial, mini-warehouse]
  • Selling service warranty contracts.
  • Short-term rentals for living accommodations (e.g. motel/hotel, beach houses, condos, timeshares, vacation homes, or RV homes).
  • Rental/lease of personal goods (e.g.: machinery, vehicles, equipment, or other property).
  • Services are mostly exempted

 

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The bottom line is …

Your business must pay taxes on sales of any non-exempt goods, and some taxable services.

 

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Let’s now review some of our clients’ frequently asked questions:

  • Is Missouri an Origin or Destination sales tax State?
  • What creates a sales tax nexus in Missouri?
  • What is the economic threshold in Missouri?
  • Does Amazon have fulfillment centers in Missouri?
  • Does Missouri have a Click-Through Nexus?

To best understand your tax obligations, new businesses need to consider how they are doing business and the type of relationships they have with buyers and any third parties to their transactions. 

 Let’s discuss some questions that will help you understand the nature of your small business and the subsequent tax implications.   

 

Is Missouri an origin or destination-based sales tax state?

Missouri is an origin-based sales tax state, which simply means you charge sales tax based on the location of the seller rather than that of the purchaser. Local cities and unincorporated areas may choose to add additional taxes. Missouri’s Department of Revenue offers a website to check the sales tax rate based on an address.

 

 

 Protip: Charge the customer tax based on their location.

 

 

What creates sales tax nexus with the state of Missouri?  

Having nexus, also known as "sufficient business presence,” with Missouri means your business has established a taxing connection with a state. When this happens, you are required to collect and remit sales tax in Missouri because you created a sales tax Nexus.

Even if your business maintains its main headquarters in another state, you may still have to charge and pay sales tax to the Missouri Department of Revenue even if you never step foot in Missouri.   

So, how do you create a sales tax nexus in Missouri?

 

What creates sales tax nexus?

 

A business establishes a nexus in Missouri by:

  • having a business location in Missouri;
  • having property stored in Missouri;
  • employing any person in Missouri;
  • contracting with a salesperson or other agent in Missouri;
  • leasing equipment used in Missouri;
  • performing services in Missouri;
  • licensing the use of intangible property in Missouri, or transporting property in Missouri using the taxpayer’s vehicles.

Let’s talk a bit more specifically about where your goods are stored such as in the instance of an Amazon warehouse. 

 

 

Does Amazon have fulfillment centers in Missouri?

No, Missouri has no distribution centers at this time.

This information is relevant for our customers who sell products on Amazon or are recognized as Amazon FBA (Fulfillment by Amazon) sellers. When Amazon stores products in one of its fulfillment centers in any state including, it triggers a sales tax requirement. 

 

 

Does Missouri have economic nexus?

Not yet, though they’ve come close to passing legislation recently and will likely try again in the next legislative session. For the time being remote sellers have no threshold to worry about. 

 

 

Does Missouri have click-through nexus?

Yes, Missouri has click-through nexus. This means if your business is involved in affiliate marketing sales to Missouri purchasers, you may be liable to pay sales tax even if you aren’t located in the state of Missouri.

 

The taxable threshold for affiliate sales in Missouri is $10,000.

 

 

Is Missouri a streamlined sales tax state?

No, at this time Missouri has yet to join the SST project. Fingers crossed they might join at some point in the future [probably not before they have economic nexus laws on the books]

 

More effectively manage your tax needs by keeping this guide handy. 

You and your business can be better equipped to avoid situations like paying fines, paying back taxes that you did know you had to pay in the first place, or facing an audit by the tax authorities in Missouri.

 

 


Collecting Sales Tax in Missouri

Collecting Sales Tax in Missouri

 

By now you know if you are a business that has established a nexus with Missouri. So you have an understanding about whether, or when, you are required to collect sales tax. Knowing this is just half the battle! Now, we are going to help you with the next half of the battle: how to navigate the process of collecting taxes.

Let’s review some common questions our clients have asked regarding their Missouri Sales Tax obligations. 

  • How do I collect Missouri Sales Tax?
  • Who is eligible for Missouri Sales Tax exemptions?
  • What should I do if my customer is exempt from sales tax in Missouri?
  • What happens if I lose a Missouri nontaxable transaction certificate? 

After reading this, you will be better equipped to determine when --and when not-- to collect sales tax in Missouri.

 

 

How do I collect Missouri sales tax?

As we covered earlier, Missouri is an origin-based state, so you’ll want to collect tax based on the business location. Your point-of-sale software should make this relatively simple, including accounting for any local surtaxes

 

 

What are the current Missouri sales tax rates?   

Missouri’s state-wide sales tax rate is 4.225% at the time of this article’s writing, with the local surtaxes potentially bringing that as high as 10%! Since sales tax rates may change and local taxes cause such variation, we shall refer you to the Missouri Department of Revenue tax rate lookup page. Any change will be reflected on that page.

 

It always helps to be accurate and up to date with this type of information! :) 

 

 

What is exempt from Missouri sales tax?

What is exempt from sales tax in Missouri?

 

Here is a sample list of exemptions: 

  • Purchases for resale
  • Everyday clothing items
  • Medical supplies
  • Groceries 

Missouri has too many exempt items to list here, but they go into greater detail on their website.

 

 

Who are eligible for Missouri sales tax exemptions?

At this point, you should know what products are exempt from sales tax in Missouri. You also want to know who may be exempt. 

Under Missouri law, the type of buyer or the way the goods will be used can qualify can buyer for a sales tax exemption. A good example of this is a merchant purchasing goods for resale, aka a wholesaler.

Other common examples of an exempt buyer may include:

  • Government agencies
  • Non-profit organizations
  • Religious groups
  • Out-of-state buyers (should their business not have nexus in their home state).

Note that a non-profit or contractor status doesn’t necessarily immediately confer tax exempt status. To learn more about .

 

 

What should I do if my customer is exempt from sales tax in Missouri?

Purchasers who are tax exempt must have completed form 129 (PDF) and must present their completed exemption certificate at the time of purchase. It is then incumbent upon the seller to hold on to this exemption certificate. Failure to do so may leave you unable to justify tax exempt sales.

Remember, you always want to collect and file a copy of the exempt certificate. Such certificates must be produced upon request in the event of an audit to justify tax-exempt sales.

 

 

What happens if I lose a Missouri sales tax exemption certificate?

Hmm... Obviously this issue is best to be avoided! Imagine finding out you’ll be audited and discovering you cannot produce an exemption certificate for a buyer! That nightmare scenario would mean you could be held liable to pay all taxes on behalf of the buyer. This is a bad scene and can be avoided by taking proper care with your paperwork… which happens to be one of our specialties! :) 

 

 

Does Missouri have a sales tax holiday?

Yes, they do! Two in fact! 🎉🥳 The Back to School Tax Holiday sees a brief respite from state sales tax [cities and districts may opt-out] on clothing, school supplies, and computers from the First Friday in August to the following Sunday.

The Show-Me Green sales tax holiday takes place between April 19th and April 25th and grants a break on energy efficient appliances.

 

***** 

 

We have now covered who you need to collect sales taxes from, how to determine whether goods for sale are deemed taxable, what goods and services fall under tax exemptions, who is eligible for tax exemption certificates, and, finally, the process of collecting sales tax in Missouri state. 

Now that we’re this far down the rabbit hole there’s only one thing we need to learn about next… how to pay the piper! 

 

 


Filing and Paying Sales Tax in Missouri

Filing and Paying Sales Tax in Missouri

 

It is time to talk about filing and paying your sales taxes in Missouri. In this section, We are going to cover the following frequently asked questions from our clients:

  • When is Missouri Sales Tax due?
  • What are the Missouri Sales Tax thresholds?
  • What if a Missouri Sales Tax filing date falls on a weekend or holiday?
  • How do I file a Missouri Sales Tax Return?
  • How do I correct a Missouri Sales Tax return?
  • What happens if I don’t collect sales tax?
  • What happens if I file or pay my sales tax return late?
  • Do I need to file a return if I don’t collect any sales tax in Missouri?
  • If I close my business, do I need to file a final sales tax return?
  • Does the Missouri Department of Revenue offer a discount for filing on time?

By the time you finish reading this, you will feel confident enough to file and pay your Missouri Sales Tax.

 

 

When is Missouri sales tax due?

Missouri sales tax payments are due based on the filing interval. Filing intervals are based on the company’s tax liability [detailed ahead, be patient! :p] 

 

Filing Interval

Due day

Annually

No later than January 31st

Quarterly

No later than the last day of the month following the quarter

Monthly

No later than the 20th day of the month following the month being reported

 

 

What are the Missouri sales tax filing interval thresholds?

The thresholds for filing intervals are based on the expected or actual tax liability owed:

 

Amount Owed [anticipated if new business, actual if existing company]

Filing interval

Less than $100 in a quarter

Annual 

More than $100 in a quarter but less than $500 in a month

Quarterly

More than $500 in a month

Monthly

 

For more information, consult the Missouri Department of Revenue FAQ.

 

Not sure how to determine your tax filing frequency?

You can review your eCommerce or Point-of-Sale Software to see the volume of sales you have generated. 

Don't worry though! The state will let you know when your due dates change. :) 

Keep an eye out for notices in your mail from the State of Missouri so that you don't miss any shift in deadlines.

 

What if a Missouri sales tax filing date falls on a weekend or holiday?

The deadline is moved to the next business day, typically the Monday following the weekend or the day after the holiday. Where possible, we always suggest filing well before the holiday, of course ;). 

 

 

How do I file a Missouri sales tax return?

Paper: Complete form  53-1 (XLSX) and mail to the address on the form.

Electronic: File online via MyTax website and submit payment via EFT. 

Note: Monthly filers are required to use online option.

 

  

How do I correct a Missouri sales tax return?

Electronic: Correct the return via the MyTax website

Paper: Submit amended copy and note by writing on the form. 

 

 

What happens if I don’t collect sales tax?

If you were required to collect sales taxes and failed to do so for whatever reason, that’s a big no-no! Ultimately the business will be held liable for the due tax. Always be sure to collect sales tax at the point of sale. Attempting to collect after the fact will be time consuming and most likely unsuccessful. 

 

 

Protip: You are still responsible for remitting sales taxes even if you failed to collect them. 

 

 

What happens if I file or pay my sales tax return late?

You will assuredly be penalized! Missouri's Department of Revenue offers a page with a late payment calculator should you find yourself in this position. 

 

 

Do I need to file a return if I don’t collect any sales tax in Missouri?

Yes, Missouri requires businesses file a “Zero-Tax” return even when they have no sales during a taxing period.

 

 

If I close my business, do I need to file a final sales tax return?

Yes, Missouri requires businesses to file a final return when closing their doors.

 

 

Does the Missouri Department of Revenue offer a discount for filing on time?

Yes! A 2% discount for early filing is granted, with no minimum or maximum! That’s huge! We strongly suggest you cash in with consistently timely filing. :)

 

Cash Money Aziz

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Now that we have covered all our bases for filing and paying sales taxes in the state of Missouri, you should feel more at ease about the process.

 

Some things to remember:

  • Due dates are important. If anything, file and pay your taxes early.
  • There are three payment plans for filing and paying your sales taxes depending on how much you collect in sales tax on average in a month.
  • You can file and pay your taxes electronically or by mail
  • If you need to amend a return, you may do so electronically or by paper.
  • If you don’t collect sales tax and you were supposed to, you (not the buyer) is liable to pay the sales tax to the state of Missouri.
  • You will have to pay late fees if you fail to file your tax return on time and/or if you fail to make your tax payment on time.
  • Even if you collect no sales tax, you still need to file a return.
  • You need to file a “Final sales tax report” when you close your business.

 

Now, you are ready to file and pay your sales tax in Missouri. If you have any more questions, feel free to contact us.

  

Click here if you think sales tax is boring. Book a meeting.

 


Please note: This blog is for informational purposes only and the information is accurate as of 8/13/2019. If you want legal advice on sales tax law for your business, please contact a Sales Tax professional. Keep in mind that sales tax regulations and laws are subject to change at any time. While we strive to keep our blog current, this blog possibly may be out of date by the time you review it.