As an e-commerce seller, you will need to collect sales tax in Missouri if you have:
(1) Gross receipts exceeds $100,000 into Missouri in the previous or current calendar year (economic nexus), or
(2) Physical presence in Missouri (physical nexus).
Below, we will highlight some of the basic provisions of Missouri sales tax law.
What is the tax rate range for Missouri?
State: Missouri’s general sales tax rate is 4.225%.
Local counties, cities and special districts may also levy sales taxes that are administered by the Department of Revenue and range from 0% to 5.875%. They may also impose a use tax at the same rate as the local sales tax.
Do you have physical or economic nexus in Missouri?
Physical nexus. Certain business activities create physical nexus in Missouri. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Missouri. Examples of business activities that can create physical nexus in Missouri include:
- Maintains an office, distribution facility, warehouse, or storage place, or similar place of business
- Delivers, installs, assembles, or performs maintenance services for the vendor's customers within Missouri
- Soliciting sales or taking orders by sales agents or traveling representatives
Economic nexus. Missouri recognizes economic nexus for any vendor with more than $100,000 in gross receipts from taxable sales into the state in the proceeding 12-months. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.
- Gross receipts include all sales of tangible personal property
- Gross receipts include sales made through a marketplace facilitator
- At the end of each calendar quarter, determine if your gross receipts from taxable sales in Missouri exceed $100,000 over the preceding 12-month period.
- If your sales in Missouri are in excess of $100,000 in that 12-month period, you are required to collect and pay Missouri vendor’s use tax, effective no later than three months following the close of the quarter.
- If you exceed the threshold, you are required to collect and remit for a minimum of twelve months.
- If a political subdivision (county, city, special district) has not passed a local use tax, out-of-state sellers that are required to file in the state of Missouri would only collect the state use tax portion of 4.225%.
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Certain food sales (reduced state rate of 1.225% plus local taxes)
- Non-prescription drugs
What are examples of sales of nontaxable/exempt items?
- Prescription drugs and medicines
- Repair labor, if separately stated
- Agricultural machinery and equipment
- Software as a Service (SaaS)
Are there any sales tax holidays?
Missouri recognizes two sales tax holidays:
- Back-to-school sales tax holiday begins on the first Friday in August through the following Sunday and includes:
- Certain back-to-school purchases, such as clothing, school supplies, computers, and other items as defined by the statute
- “Show Me Green” holiday begins April 19 and ends April 25 and applies to sales of qualifying ENERGY STAR certified new appliances.
Is Missouri a member of the SST (Streamlined Sales Tax)?
Currently, Missouri is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: Missouri Department of Revenue.
For more information on Missouri rates, see: Missouri Sales/Use Tax Rate Tables.