Missouri: Out-of-State Business and Exemption Certificates
- Apr 18, 2013 | Gail Cole
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.
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