The State of Missouri, along with other states, imposes a use tax on businesses for purchases of tangible products purchased without sales tax. Common examples of purchases where use tax would be due include purchases from internet sellers/sites and purchases from out of state retailers/suppliers that ship directly to you. Use tax is not imposed on purchases made for intangible goods like services.
In Missouri, businesses have an exemption up to $2,000 before they have to start paying use tax on taxable purchases. Once your annual purchases of taxable products reaches $2,000, you must remit the tax due on your total taxable purchases for the year. The Missouri use tax return is filed either monthly, quarterly, or annually depending on the amount of taxable purchases during the year. The majority of businesses file on a quarterly basis, but the Missouri Department of Revenue could change the frequency for a business.
The Missouri Department of Revenue performs audits on use tax purchases, so businesses need to correctly and timely file their use tax returns.
Be aware that each state’s use tax rules vary, so consult with your accountant when filing in multiple states.
If you are looking for more information, please contact BWTP P.C. or Melissa McDonnell at 314-576-1350.