Missouri sales tax for online sellers: nexus, permit and filing

What is the Missouri sales tax rate?

The state rate is 4.225%. Sellers based in Missouri charge sales tax, with local rates that can take the total above 10% in some places. Remote sellers charge vendor's use tax instead: the 4.225% state rate plus a local use tax, but only for deliveries to cities and counties that have adopted one. Where no local use tax exists, the remote seller charges 4.225% only. Groceries carry a reduced state rate.

When does an online seller have to collect in Missouri?

A seller with a physical presence in Missouri must register whatever its sales. A seller with none must collect vendor's use tax once its gross receipts from taxable sales of goods delivered into Missouri are more than $100,000 in the previous 12 months. There is no transaction-count test. Most guidance says sales made through marketplaces count towards the $100,000, although the marketplace collects the tax on them; a seller that sells only through marketplaces does not register.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Missouri requires marketplace facilitators to collect and remit the tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online through MyTax Missouri, the Department of Revenue's portal, for a vendor's use tax account. There is no fee. Missouri is not a member of the Streamlined Sales Tax agreement, so you register with the state directly.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Missouri against its threshold.

2. Register before collecting

   With the Missouri tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Missouri assigns, including zero returns where required.

How are returns filed?

Vendor's use tax returns are filed through MyTax Missouri. The Department assigns the frequency from the tax you collect: many remote sellers file quarterly, due by the end of the month after the quarter, and larger sellers file monthly. The return reports sales by local jurisdiction, so your store needs the delivery address for each order.

See how to file a sales tax return.

How does the quarterly test work?

1. At the end of each calendar quarter

   Add up your taxable sales of goods into Missouri for the previous 12 months.

2. If the total is more than $100,000

   You must register and start collecting no later than three months after the end of that quarter.

3. Keep collecting

   For at least 12 months, even if your sales then fall.

A seller whose 12-month total first passes $100,000 at the quarter ending June 30 must be collecting by the start of October.

Why is it a use tax and not a sales tax?

Missouri's sales tax applies to sales made from within the state. Goods shipped in from outside are subject to use tax, which the seller collects when it has nexus. For the customer the effect is similar, but the local part differs: a city may have a local sales tax and no local use tax, in which case a remote seller charges less tax than a local shop would. Use the Department's rate tables for use tax, not sales tax.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.