When it comes to Missouri, in order for a business to be exempt from paying sales tax, they must have a valid Resale Certificate. The supplier or provider of the good or service is authorized not to charge any sales tax on the transaction, and the liability of sales tax then falls onto the reseller. There are two ways in which a reseller can share their certificate: submitting an existing certificate to the business or creating a new certificate on third-party platforms such as Avalara, Tax-exempt etc.

The process of acquiring and maintaining a resale certificate can be tricky, but it’s important for businesses to do so in order to avoid any penalties associated with not having one. In addition, there are certain criteria that each state has in order for a company to be exempt from sales tax. For Missouri, the threshold for nexus (a connection with) is $100,000 in sales only; meaning that if your company meets this requirement you are obligated to register for a Sales Tax Permit with the state government.

o  Missouri – https://dor.mo.gov/register-business/

Sales tax rate – 4.225%

Information required to register for a sales tax permit in the state of Mississippi

1)     Names, addresses, and SSN of owners/officers/members

2)     Business address

3)     Legal business name and DBA / Fictitious Name Registration if applicable

4)     Employer Identification Number (EIN) from the IRS, or owner’s Social Security Number if a sole proprietorship with no employees

5)     Types of products

6)     Type of business entity: Sole Proprietorship, Partnership, Limited Liability Partnership, Corporation, Limited Liability Company (LLC)

7)     Charter number or certificate of authority number (corporations and LLCs only) from the Missouri Secretary of State

8)     Date taxable sales will begin

9)     Projected sales tax liability

10)  Seasonality of the business