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Missouri: Out-of-State Business and Exemption Certificates


 Missouri will sometimes accept out-of-state exemption certificates.

What happens when you live and own a business in one state but purchase items for resale in another state? The Department of Revenue has recently issued a letter ruling that answers that question. 

Items for Resale: Exempt

According to Letter Ruling 7233, an out-of-state business that uses a Missouri supplier may use an out-of-state resale certificate to purchase items for resale tax free.

The out-of-state business referenced in LR 7233 is an HVAC dealer that uses a Missouri supplier but does no business in the Show Me State. The supplies are usually shipped out-of-state at the time of purchase. On occasion, however, the HVAC dealer drives to Missouri to pick up supplies that will be resold in another state.

In such circumstances, the HVAC dealer may use a resale certificate issued by a different state to exempt it from sales tax on the transaction. According to the Missouri DOR, "Applicant may use its sales tax license number issued by another state when purchasing items solely for the purpose of resale ... from a Missouri supplier. No Missouri sales tax would be due on these purchases for resale."

Items for Installation: Not Exempt

However, items purchased "in Missouri for installation in another state" are subject to Missouri sales tax at the time of purchase.

How does your business manage exemption certificates?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.