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Missouri Sales Tax 2022 for Businesses: A Complete Guide

“The statewide sales tax for businesses in Missouri is 4.225%.”

What Does The Sales Tax For Businesses In Missouri Mean?

Sales tax for businesses in Missouri is a tax that is paid to the governing body; both state and local. An individual selling taxable goods or services in Missouri acts as an agent of the state that is going to collect the tax from consumers and further pass it to the appropriate tax authority. In Missouri, sales and use taxes are administered by the DOR i.e. Department of Revenue.  

All the taxes that are collected from customers are forwarded to the state, not the seller. The seller has the responsibility not just to collect the taxes but also to forward them to the authority in order to remain in compliance with state and local laws. 

Read More: Nebraska Sales Tax For Businesses: A Complete Guide

How Much Is The Sales Tax For Businesses In Missouri?

In Missouri, the first general state sales tax was adopted in 1934, and since then, the rate spiked to 4.225 percent. On the top list of state sales taxes, there are local sales taxes and special district taxes that range between 0% to 5.875%. If we talk about the combined sales tax rate in Missouri – it ranges from 4.225 percent to 10.1 percent, all depends upon the sale location. 

Missouri Sales Tax Threshold Limit
4.225%$100,000 economic sales threshold limit

Do You Need To Collect Missouri Sales Tax For Your Ecommerce Business?

Yes. The seller needs to collect sales tax in Missouri if they have nexus with that state. When it comes to nexus, there are two ways a seller can link to the state – physical or economic. Physical nexus refers to the tangible presence in that state and economic nexus simply means passing a state’s economic threshold for total revenue or total transactions in that state. 

What Types Of Goods and Services Are Taxable Under Missouri Sales Tax?

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Taxes on Transactions

Sales tax is legally required to be collected from all tangible, physical things sold to a consumer in Missouri. Some medical gadgets, some prescription medications, and machinery and chemicals used in the agricultural and manufacturing industries are all exempt from this tax.

Taxes on Services

Services are not normally considered taxable in the state of Missouri. There are a few exceptions to the tax-free status of most services. For example, a service that involves generating, selling, or manufacturing a product is very certainly taxable, and you will almost certainly be required to pay sales tax on the service.

Furniture4.225%
Home Appliances 4.225%
Motor Vehicles4.225%

Tax Collection

Being a seller of Missouri, you have to apply the appropriate rate to all taxable sales, remit sales, tax, and file them timely with the Missouri Department of Revenue. A seller also has to keep great records once you’ve successfully registered to collect Missouri sales tax.

A seller can start with collecting the sales tax once applied for the sales tax registration with the Missouri Department of Revenue. Remember, you don’t own those tax dollars. As a Missouri agent, your job is to just act as a mediator between consumers and the state’s tax collectors.

Missouri is a state with an origin-based sales tax. So collecting sales tax in Missouri is rather simple. Collect sales tax at the rate applicable to your location. Missouri’s state sales tax rate is 4.225 percent. If you have multiple locations in Missouri, the sales tax rate you charge will be determined depending upon the location of sale. 

Tax Filing

It is the responsibility of the seller to file the sales tax registration with the Missouri Department of Revenue and start collecting sales tax. Remember that those tax funds don’t go into the account of the seller. As an agent for the state of Missouri, the job is to act as a mediator between taxpayers and tax officials.

How Often Do You Need To File Missouri Sales Tax Return?

The Missouri Department of Revenue mandates monthly sales tax filing by the 20th of the month following the tax period. All returns are due by the last day of the month following the tax period in months where quarterly filing is also required.

If you file your Missouri sales tax return late, you may be charged a late filing penalty as well as interest on any unpaid tax. The Missouri DOR may send you an extension if you miss a Missouri sales tax filing deadline due to circumstances.

 What If You Fail To File Your Tax Return Before The Due Date?

Failure to file returns or properly handle collected taxes can result in penalties and interest. If you fail to file your tax returns on time, you will almost certainly face penalties and interest costs. The longer you wait to file your taxes, the higher the penalty.

As a result, paying taxes on time is a good idea. It is your responsibility to obtain the current status from the Department of Revenue if you are in the process of running a business in Missouri. After all, it is you who will be responsible for all outstanding Missouri sales and use tax liabilities.

Get The Best Assistance On Missouri Sales Tax 2022 Today

Freecashflow.io is here to handle accounting and tax needs of eCommerce enterprises. We’ve worked with multibillion-dollar companies including Warner Brothers, Ernst & Young, and Paramount Pictures. We can help you with your tax and accounting issues. Please do not hesitate to contact us if you have any questions.

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