Can I collect sales tax from customers in different states without violating tax laws in Missouri? What are the requirements?

Here is what you need to know:

If you are selling tangible personal property or rendering taxable service at retail in Missouri, you are responsible for collecting and remitting the sales tax to the state ^[1.7]. The tax rate is 4% of the purchase price paid or charged for tangible personal property, excluding motor vehicles, trailers, motorcycles, mopeds, motortricycles, boats, and outboard motors required to be titled under the laws of Missouri ^[1.8].

If you are selling tangible personal property or rendering taxable service at retail outside of Missouri, you generally do not have to collect Missouri sales tax ^[1.5]. However, if you have a physical presence in Missouri, such as a store, warehouse, or office, you may be required to collect Missouri sales tax on sales made to customers in Missouri ^[1.5].

If you are selling tangible personal property or rendering taxable service at retail in multiple states, you should consult with a tax professional to determine your sales tax obligations in each state. Each state has its own sales tax laws and rules, and the requirements can vary depending on the state and the type of product or service being sold.

In addition, Missouri imposes a penalty on any business or individual engaged in the business of selling tangible personal property within the state without a valid Missouri retail sales tax license ^[1.2]. The penalty can be up to $500 for the first day and $100 for each day thereafter, not to exceed $10,000, in addition to any other penalties or interest as prescribed in chapter 144.

To qualify for an exemption from Missouri sales tax, common carriers engaged in interstate air transportation of tangible personal property must file an election with the department of revenue and agree to pay the state $300,000 annually in equal monthly payments ^[1.3].

Sales of tangible personal property through vending machines located in Missouri are subject to Missouri sales tax ^[1.6].

In summary, if you are selling tangible personal property or rendering taxable service at retail in Missouri, you are responsible for collecting and remitting the sales tax to the state. If you are selling tangible personal property or rendering taxable service at retail outside of Missouri, you generally do not have to collect Missouri sales tax, but you may have sales tax obligations in other states. If you are selling tangible personal property or rendering taxable service at retail in multiple states, you should consult with a tax professional to determine your sales tax obligations in each state.

Source(s):

• [1.2] Retail sales tax license, administrative penalty for failure to obtain — burden of proof required by the department.
• [1.3] Common carriers in interstate air transportation, exemption for tangible personal property purchased or stored in state then transported out of state and used in the conduct of business — qualification for exemption — use in Missouri, taxes to apply.
• [1.5] Tax imposed, property subject, exclusions, who liable — inapplicable to out-of-state businesses and employees, when.
• [1.6] Sales of tangible property to vending machine owners or operators deemed a sale at retail subject to certain sales tax, exceptions.
• [1.7] Seller responsible for tax — rules — returns — advertising absorption of tax, stated on invoice or receipt — violation, penalty.
• [1.8] Rate of tax — tickets, notice of sales tax.

Jurisdiction

Missouri

• General