How to use a Missouri resale certificate
by August 24, 2023
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
If you buy products exclusively to resale in the state of Missouri, you can often avoid paying sales tax on your purchases by presenting a Missouri resale certificate at checkout. Always keep in mind that you should only use your resale certificate to buy items you intend to resell or that you intend to use as a component part of an item for resale. Any other use of the resale certificate (such as buying office supplies or personal items) is usually considered unlawful.
Here are the rules and regulations for using (and accepting) a resale certificate in Missouri.
How to use a Missouri resale certificate
In Missouri, you are allowed to buy items tax free as long as you intend to resale them.
To use a resale certificate, fill out Missouri Form 149 – Sales and Use Tax Exemption Certificate and present it to the vendor.
If you are not registered to collect sales tax in Missouri, you may enter your own state’s tax I.D. number under the “Resale” section of the form. (In other words, Missouri is not one of the 12 states that refuses to accept an out-of-state resale certificate.)
You can read more about using a resale certificate on the Missouri Department of Revenue website here. If you have further questions, email the Missouri Department of Revenue here: [email protected].
How to accept a Missouri resale certificate
If you are a retailer in Missouri and are presented with a Missouri resale certificate, you have a few responsibilities:
- Make sure the Missouri Form 149 is filled out accurately and completely
- Verify that the purchaser’s Tax ID is valid – Verify that the purchaser’s resale certificate number (either from Missouri or another state) is valid. This link shows you how to verify the validity of a resale certificate issued by every state.
- Make a “good faith” effort to ensure that the resale certificate is valid – It’s unlawful for someone to use a resale certificate to buy a product they do not intend to resale. Making a good faith effort means that you, in good faith, think that the buyer is honestly buying items to resale. For example, if the name of the company is “Super Fun Toy Store” and they are buying a couch from you, then they may not actually be buying that item to resell it in their store! As a vendor, you can refuse the right to accept a resale certificate if you suspect it is fraudulent.
- Keep a fully executed copy of the resale certificate on file in case of audit – If your business is ever audited, you will need to show proof that you legally did not collect sales tax from any buyers who provided you with resale certificates
If you have further questions about accepting a Missouri resale certificate, email the Missouri Department of Revenue here: [email protected].
Don’t want to keep up with sales tax? Let TaxJar automate it for you. Get started with a trial and learn more today!
