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
A Missouri resale tax exemption certificate allows businesses to buy or rent property or products without having to pay tax. It is good for one year, and businesses must renew it annually in order to continue enjoying the benefits of the exemption.
A resale tax exemption certificate is required to rent or purchase a property that falls within this category. It is necessary to have this document in order to rent or purchase such a property.
If you resell an item that you’ve purchased, you may need to report use taxes on the item. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.
Missouri Vendors need to be aware of a few things when applying for a resale tax exemption certificate. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. That means that if you purchase something for personal use but then later sell it as part of your business, you can use this certificate for those transactions.
There are 2 ways of sharing a reseller’s certificate by the reseller, this can be achieved, either through submitting an existing reseller certificate to the business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc.
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
Missouri is a state in the Midwestern region of the United States. Ranking 21st in land area, it is bordered by eight states (tied for the most with Tennessee): Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas to the south and Oklahoma, Kansas and Nebraska to the west. In the south are the Ozarks, a forested highland, providing timber, minerals, and recreation. The Missouri River, after which the state is named, flows through the center into the Mississippi River, which makes up the eastern border. With more than six million residents, it is the 19th-most populous state of the country. The largest urban areas are St. Louis, Kansas City, Springfield and Columbia; the capital is Jefferson City.
Humans have inhabited what is now Missouri for at least 12,000 years. The Mississippian culture, which emerged at least in the ninth century, built cities and mounds before declining in the 14th century. When European explorers arrived in the 17th century, they encountered the Osage and Missouria nations. The French incorporated the territory into Louisiana founding Ste. Genevieve in 1735 and St. Louis in 1764. After a brief period of Spanish rule, the United States acquired Missouri as part of the Louisiana Purchase in 1803. Americans from the Upland South, including enslaved African Americans, rushed into the new Missouri Territory. Missouri was admitted as a slave state as part of the Missouri Compromise of 1820. Many from Virginia, Kentucky and Tennessee settled in the Boonslick area of Mid-Missouri. Soon after, heavy German immigration formed the Missouri Rhineland.Source