![]() ![]() An out-of-state seller creates an obligation to start collecting Missouri tax once that seller’s sales into the state exceed $100,000. This concept of a threshold is central to economic nexus. The Missouri Department of Revenue has confirmed that nontaxable wholesale sales should not be included when calculating the threshold. Senate Bill 153 specifies that sales made through a marketplace facilitator count toward the threshold. The state’s economic nexus threshold is $100,000 in cumulative gross receipts from taxable sales of tangible personal property delivered into Missouri during the previous or current calendar year. Missouri’s economic nexus law takes effect January 1, 2023. You can find state-specific details in this state-by-state guide to economic nexus laws. Today, every state with a sales tax has an economic nexus law, and every economic nexus law provides an exception for businesses with sales in the state beneath a certain threshold. ![]() Following Wayfair, one state after another enacted an economic nexus law in order to tax remote sales. Physical presence still establishes a sales tax obligation in all states with a sales tax, but the Wayfair decision freed states to tax businesses with no physical tie to the state. It’s fairly new, as states were generally limited to taxing businesses with a physical presence in the state until the U.S. Economic nexus is a connection between a business and a state that bases a sales and use tax obligation on sales activity in the state rather than physical presence. ![]()
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