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Can I collect sales tax from customers in different states without violating tax laws in Mississippi? What are the requirements?
To answer your question, Mississippi law requires that any person maintaining a place of business or doing business in the state must collect sales tax from the purchaser and remit it to the commissioner [1.1]. Additionally, any person selling tangible personal property or specified digital products that does not maintain a place of business in Mississippi may be authorized by the commissioner to collect the tax from customers in Mississippi who are liable for its payment [1.1].
However, if you are selling to customers in different states, you may be subject to the sales tax laws of those states as well. Each state has its own sales tax laws and requirements, so it is important to research and comply with the laws of each state where you have customers.
Mississippi is a member of the Streamlined Sales and Use Tax Agreement, which simplifies and modernizes sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce [3.1]. The State Tax Commission is authorized to enter into the Streamlined Sales and Use Tax Agreement with one or more states to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multi-state sellers [3.1].
In summary, you can collect sales tax from customers in different states, but you must comply with the sales tax laws of each state. Mississippi is a member of the Streamlined Sales and Use Tax Agreement, which may simplify the process of complying with sales tax laws in multiple states.
Source(s):
- [1.1] Seller to collect tax from purchaser.
- [3.1] Authority of State Tax Commission to enter into Streamlined Sales and Use Tax Agreement with one or more states; implementation.
Jurisdiction
Mississippi