Most tangible personal property is subject to sales tax. However, some necessities like food, clothing and medication are not taxable in some states. And sometimes states consider things like digital goods (eBooks, music, movies) and software-as-a-service (SaaS) taxable even though they can’t be touched or held.
Here’s how Missouri taxes the most commonly sales tax exempt items:
Are groceries taxable in Missouri?
Yes, groceries are taxable in Missouri, but at a reduced rate of 1.225%. The reduced rate applies to all types of items that can be bought with SNAP benefits (aka food stamps). Also, Missouri local areas (cities, counties, etc.) are allowed to require an additional local sales tax on groceries.
I’m in Missouri. How do I collect sales tax from my Missouri buyers?
Missouri is one of a handful of states with 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. (That simply means the rate from where the item is sold/shipped.)
So if your online store’s headquarters is located in Ballwin, Missouri and you make a sale to a buyer in Camdenton, Missouri then you’d charge the sales tax rate at the location where the order originated. In this case, that is your HQ in Ballwin.
To sum it up, if a sale is sourced from a location in Missouri, then you’d charge the sales tax rate at the location where the order originated.
I’m not in Missouri but have sales tax nexus there. How do I collect sales tax from Missouri buyers?
For interstate sales, Missouri is a destination-based sales tax sourcing state. So if you are located in South Carolina but make a sale to a buyer in Missouri, then 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 item(s) sold.
When your sales tax filing due date approaches, you can file Missouri sales tax returns in multiple ways.
File and pay online - at MyTaxMissouri. You can also upload your return as an Excel file using their pre-formatted template. Taxpayers with three or more Missouri locations are required to file electronically unless you request and receive a waiver.
I didn’t collect any Missouri sales tax this period. Do I still need to file a return?
Yes. You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.
What is the penalty for filing and/or paying Missouri sales tax late?
The penalty for failing to file Missouri sales tax is 5% of tax due per month or fraction of a month with a maximum of 25%.
The penalty for failing to pay Missouri sales tax is 5% of tax due.
Can I amend a Missouri sales tax return?
Yes. If filing by paper, the Missouri DOR instructs taxpayers to use the same form they filed the original return with, but check the “Amended” box.
How often will I be required to file and pay sales tax in Missouri?
In general, the more sales you make and sales tax you collect, the more often you are required to file and pay sales tax. In Missouri, you’ll be assigned to file either monthly, quarterly or annually, depending on the total amount of state sales tax you collect.
Sales Tax Collected
$500 or more per month
Less than $500 per month but more than $200 per quarter
Less than $200 per quarter
Missouri sales tax due dates
Sales tax returns are due on the last day of the month following the taxable period.
If your sales tax filing due date falls on a weekend or holiday, it’s due the next business day.