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How To Get A Missouri Sales Tax Exemption Certificate

By: Startup 101
Last Updated: November 15, 2024

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A Missouri Sales Tax Exemption Certificate is a document that allows a Missouri business to purchase goods and services tax-free from suppliers and resell them.

Learn more about how the Missouri Sales Tax Exemption Certificate works, how to get one, and more.

What is a Sales Tax Exemption Certificate?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier. The state sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise.

For instance, when a hardware store in Missouri orders a new supply of power tools to sell in their shop by holding a sales tax exemption certificate (sometimes referred to as a resale certificate), the hardware store owner won’t pay state sales tax on the purchase of inventory. When a customer chooses to buy one of these power tools from the store, the retailer will charge sales tax to the customer based on the full price of the tool. This added charge is the sales tax that Missouri imposes on retail transactions.

As the retailer, the hardware store is responsible for collecting this sales tax from all of its transactions. Usually, at the end of each month, the hardware store sends the collected sales tax to the state.

Note that the sales tax exemption is only intended for inventory that will be resold and not for the tax-free purchase of items used in normal business operations, such as paper, pens, etc.

How to fill out the Missouri Sales and Use Tax Exemption Certificate (Form 149)

Before a business starts selling products or providing taxable services, it must first get a Missouri Sales Tax License (sometimes referred to as a seller’s permit, sales tax number, or sales tax permit) from the Missouri Department of Revenue. After registering for the license, the Missouri Department of Revenue will provide a Missouri Tax ID Number, which will be used when filling out the Sales and Use Tax Exemption Certificate.

Step 1: Begin by downloading the Missouri Sales and Use Tax Exemption Certificate Form 149 
Step 2: Identify the name, phone number, contact person, Doing Business As Name (DBA), address, and Missouri Tax ID Number of the purchaser
Step 3: Indicate the products or services the purchaser will be purchasing tax-exempt and what the purchaser’s business does
Step 4: Include the name, phone number, contact person, DBA, and address of the seller
Step 5: Indicate the reason for the sales tax exemption:

  • Purchasing tangible personal property for resale
  • Purchasing taxable services for resale
  • A manufacturer or wholesaler makes purchases for the wholesaler; or
  • A motor vehicle dealer makes purchases

Step 6: If the business is a manufacturer, check the appropriate boxes (not typically applicable for retailers)
Step 7: The Other section is used when purchasing specific tax-exempt products, such as certain agricultural products, common carriers, locomotive fuel, air or water pollution goods, or commercial motor vehicles or trailers.
Step 8: The purchaser will certify that the property is for resale and sign and date the certificate. 

Form 149 Sales and Use Tax Exemption Certificate

Fillable Form 149 Sales and Use Tax Exemption Certificate

Missouri Sales Tax Exemption Certificate FAQs

How much does a Missouri Sales Tax Exemption Certificate cost?

There is no cost for a Certificate of Exemption in Missouri.

Does a Missouri Sales and Use Tax Exemption Certificate Expire?

A Missouri Sales and Use Tax Exemption Certificate is valid for five years – Missouri Code 12 CSR 10-107.100.

How often is Missouri sales tax due?

Most new businesses are set up to file and pay sales and use tax monthly, but depending on the amount of tax collected, your business may have a quarterly or annual filing frequency instead.

Where do I file the Missouri sales tax exemption certificate?

In Missouri, the certificate is not filed with any government agency. Instead, it is kept by the seller (the business selling the merchandise for resale).

Is a Sales Tax Exemption Certificate the same as a Sales Tax License?

No – The Sales Tax License and Sales and Use Tax Exemption Certificate are commonly thought of as the same thing, but they are actually two separate documents. The Sales Tax License allows a business to sell and collect sales tax from taxable products and services in the state, while the Sales and Use Tax Exemption Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.

These are two of several registrations your business may need. To learn more, check out our guide to Missouri business licenses.

What steps should a business take to accept a resale certificate?

When a business is presented with a resale certificate, the seller has the burden of proof to verify that the buyer’s information is correct and to keep these records. Failing to verify this information may make the seller liable for Missouri sales taxes.

Before accepting a resale certificate, a seller should:
– Review the resale certificate to make sure it is completely filled out. 
– Verify the purchaser’s valid Sales Tax License by searching the Missouri revoked sales tax license database.
– Sellers are also responsible for examining the certificate and evaluating whether the goods sold are reasonably consistent with the purchaser’s line of business.  For example, if the buyer’s business is a car dealership but wants to purchase office supplies tax-free, the seller should investigate further.  
– Keep a file of resale certificates. 

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