Sales Tax APIThe same engine Zamp customers use.If you own a boutique, a restaurant, or any other business in Missouri, keeping up with sales tax regulations is essential for your success.
In this Missouri sales tax guide, we’ll simplify everything you need to know about the state’s sales tax—from how to collect it to what creates sales tax nexus for remote sellers.
Additionally, we’ll share the best solution for a streamlined sales tax journey.
Collecting Missouri Sales Tax from Customers
Sales tax applies to all taxable sales made from a location within the state of Missouri. Vendor’s use tax applies to all taxable sales made by out-of-state vendors where goods are shipped into Missouri and where title passes within the state of Missouri.
Remote sellers that have sales tax nexus in Missouri must register in the state and collect and remit vendor’s use tax on taxable transactions in the state.
Below, we’ll discuss how to collect Missouri state use tax.
Do I Have to Collect Missouri Sales Tax from Customers?
If you have sales tax nexus in Missouri, you must collect use tax from Missouri customers.
What Creates Sales Tax Nexus in Missouri?
According to Missouri sales tax law, you have a sales tax nexus if you meet one of the following conditions:
- Economic Nexus: Remote sellers have economic nexus if they sell more than $100,000 of taxable products in the previous 12-month period to Missouri residents.
- Physical Location: Owning or leasing a store, office, warehouse, or other place of business in the state creates a physical presence in Missouri, which means a remote business must collect use tax on taxable sales in the state.
- Employee Location or Travel: Businesses with employees, brokers, agents, independent contractors, or other representatives that reside in Missouri, or regularly and systematically visit Missouri on behalf of the business, create a physical presence in the state, triggering the business’ liability to collect use tax on taxable sales in the state.
Learn more about the sales tax nexus and when you should collect sales tax.
Do I Have to Collect Sales Tax from Missouri Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
You do not have to register, collect, or remit vendor’s use tax if you are selling through a marketplace facilitator only.
Missouri has a marketplace facilitator law, which means that marketplaces like Walmart, Etsy, or Amazon should collect sales tax on behalf of third-party sellers on their platforms.
However, if you are selling independently in addition to selling through a marketplace facilitator and your total gross receipts (including those made through the marketplace facilitator) exceed $100,000, you will need to register, collect, and remit use tax on the taxable sales made separately from what is reported by the marketplace facilitator.
Taxable Products in Missouri
Generally, most tangible personal property is subject to sales tax in Missouri. This includes items like clothing, toys, furniture, antiques, and giftware.
However, Missouri applies a reduced tax of 1.225% on food products bought for home consumption, seeds, and plants used to grow food for personal consumption. This also includes all food items bought with food stamps.
Missouri also taxes some services like telecommunications.
Let’s take a closer look at how products are taxed in Missouri.
Are Groceries Taxable in Missouri?
Yes, groceries are taxable in Missouri, but at a reduced rate of 1.225%. This reduced rate applies to all items that can be bought with SNAP benefits (aka food stamps).
Missouri counties, cities, and special districts are allowed to impose an additional local sales tax on groceries.
Is Clothing Taxable in Missouri?
Yes, clothing is subject to sales tax in Missouri.
Are Digital Products Taxable in Missouri?
No, digital products are not taxable in Missouri.
Is Software-as-a-Service (SaaS) Taxable in Missouri?
No. Missouri doesn’t collect sales tax on SaaS products.
Are Services Taxable in Missouri?
Most services are not taxable in Missouri, although there are some exceptions, such as:
- Admission to places of amusement, entertainment or recreation, games, and athletic events
- Intrastate travel tickets (on trains, buses, boats, etc.)
- Labor to fabricate a taxable product
- Lodging (including rooms, meals, and drinks)
- Telecommunications services
Zamp Tip
Note that utilities for domestic use are exempt from sales tax at the state level. However, local taxes may apply.
Tax-exempt Items
Several categories of items are exempt from sales tax in Missouri. For example:
- Animals and poultry grown for breeding and feeding purposes
- Medicines and vaccines for animals or poultry that are kept as food or for other purposes like fiber
- Renting of film or records for public commercial display
- Handicraft items if the seller and their spouse are over 65 years of age and if these sales don’t constitute the majority of their income
- Machinery, equipment, and devices purchased, leased, and used solely for preventing or monitoring air pollution
- Metered water service, electricity, natural, artificial, or propane gas, wood, coal, or home heating oil for domestic use (local taxes can be reapplied)
- Tickets to museums, zoos, and planetariums owned or operated by a municipality or other governmental organizations
- Medical devices, medicines like insulin, hospital beds, and accessories
If your business has a nexus in Missouri and sells taxable products in the state, you will need to obtain a Missouri sales tax license. Let’s explore how you can get one.
How to Register for a Missouri Seller’s Tax Permit
You can register for a seller’s tax permit online at the Missouri Department of Revenue.
Learn how to register for a sales tax permit in every US state.
Do I Need a Missouri Seller’s Permit if I Only Sell Temporarily in the State?
Yes.
Missouri requires all retailers to register, even if you only temporarily sell in the state.
How to Collect Sales Tax in Missouri
Missouri is an origin-based sales tax sourcing state for intrastate sales and a destination-based sales tax sourcing state for interstate sales.
Learn more about origin-based and destination-based sales tax sourcing here.
A. How to Collect Sales Tax on Intrastate Missouri Sales
Missouri has an origin-based sales tax sourcing for in-state sales. This means that sales tax is charged at the rate of the location where the order originates.
For example, if your online store’s headquarters are in Ballwin, Missouri, and you sell to a buyer in Camdenton, Missouri, then you’d charge the sales tax rate in Ballwin.
B. How to Collect Sales Tax on Interstate Missouri Sales
For interstate sales, Missouri is a destination-based sales tax sourcing state.
This means that, if you’re in South Carolina but sell to a buyer in Missouri, you would charge the sales tax rate at your buyer’s location in Missouri.
Should You Collect Sales Tax on Shipping Charges in Missouri?
No.
Shipping charges are not subject to Missouri sales tax as long as they are separately stated from the price of the items sold.
How to File and Pay Sales Tax in Missouri
When your sales tax filing due date approaches, you can file Missouri sales tax returns in multiple ways.
You can:
- File and pay online: Pay online at MyTaxMissouri. You can also upload your return as an Excel file using their pre-formatted template. Taxpayers reporting sales tax from three or more Missouri business locations must file electronically unless they request and receive a waiver.
- File by mail: File Form 53-1 Sales Tax Return and pay with check or online.
- Let Zamp handle your Missouri sales tax filing and remittance so you never have to look at a sales tax return again!
Learn how to file and pay sales tax in other US states here.
