Do I have to collect sales tax if I sell online in Missouri?
If your business has a physical presence in Missouri and you sell taxable products to Missouri customers online, yes, you need to collect sales tax. Having an office, warehouse, inventory, or even a home-based business in the state creates what’s called nexus. That obligation exists whether you sell from a storefront or through your website.
Missouri’s sales tax includes state and local components. The state rate is 4.225%, but local rates vary by jurisdiction. For online sales, the customer’s delivery address determines which local rate applies. This destination-based system means you could be collecting different rates for different orders depending on where they ship.
If you’re selling into Missouri from another state, different rules apply. Missouri adopted economic nexus rules effective January 1, 2023. If your annual sales into Missouri exceed $100,000, you’re required to register, collect, and remit Missouri sales tax even without physical presence in the state.
The complexity increases when you sell to customers across multiple states. Each state sets its own economic nexus threshold. A Missouri-based business selling nationally could have sales tax obligations in any state where sales exceed that state’s threshold. Many online sellers use automated sales tax software to calculate and collect the correct amount based on each customer’s location. A bookkeeping service familiar with e-commerce can help you understand which states you have obligations in and make sure your books track sales tax liability correctly.
Not everything is taxable. Most tangible products are subject to sales tax, but some categories like groceries are taxed at reduced rates. Digital goods and services have their own rules depending on what you’re selling.
Filing frequency depends on your sales volume. High-volume sellers file monthly while lower-volume businesses may file quarterly or annually. You’ll need to register with the Missouri Department of Revenue before you begin collecting. Once you’re registered, the ongoing compliance becomes routine. Sales tax filing handled on schedule keeps you from missing deadlines or dealing with penalty notices because a quarterly return slipped through the cracks.
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More Questions
What is considered a full charge bookkeeper?
A full charge bookkeeper handles the complete accounting cycle independently. This includes transaction recording, accounts receivable, accounts payable, payroll, bank reconciliation, and producing monthly financial statements.
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Technically unlimited. The statute of limitations doesn't start until you file, so there's no point where unfiled returns become safe. The IRS can pursue non-filers indefinitely and penalties compound the longer you wait.
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Labor typically runs 25 to 35 percent of project cost, materials 40 to 50 percent, and net profit should land between 5 and 10 percent. These benchmarks only work if you track actual costs by job and compare them to your estimates.
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Start with your business information, the customer's details, a clear description of what you did, and the amount owed. Include payment terms, a due date, and instructions for how to pay. Send it right after completing the work.
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QuickBooks Online works best for most dental offices. It handles insurance receivables, integrates with practice management systems, and gives you the reporting flexibility dental practices need.
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Pay quarterly estimated taxes or increase withholding to cover at least 90% of your current year tax or 100% of your prior year tax. Missouri charges penalties when you owe more than $100 at filing and didn't pay enough throughout the year.
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