State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Missouri (MO)

MO Sales Tax - Name of Tax and General Application:

Missouri imposes a tax on the privilege of engaging in the sales of tangible personal property or certain taxable services at retail in the state. This tax is called "sales tax". Additionally, there is a tax imposed on the privilege of using, storing or consuming tangible personal property that is in the state or has come to rest in the state. This tax is called "use tax" and does not apply where sales tax has already been imposed.

MO Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

In Missouri, out-of-state vendors are required to collect sales and use tax when they directly or by an agent have an office or other place of business in the state, maintain a stock of goods, regularly solicit orders (unless solely by advertising by direct mail), or deliver property in the state other than by common carrier. An out-of-state vendor with nexus must register with the Missouri Department of Revenue.

MO Local Tax - Do Localities Impose Tax?

Yes, Missouri imposes local sales tax.

MO Resale Certificate Renewal Agreements:

A resale certificate transfers the burden of proof from the seller to the purchaser when it is supplied in the course of purchasing tangible personal property for resale.

MO Resale Certificate Renewal Periods

The certificate is valid indefinitely unless the character of the purchaser's operation changes or the taxable services or tangible personal property the purchaser normally purchases for resale changes.

MO Statute of Limitations

The later of three years from the date the return was due or from the date the return was filed.