Client Tip for August 2017: MISSOURI SALES AND USE TAX
MISSOURI SALES AND USE TAX
Effective August 28, 2017, Missouri sales and use taxes no longer need to be charged on sales or paid on purchases for usual and customary delivery charges if they are separately stated on the invoice.
Mandatory gratuities which are charged in conjunction with providing food and beverages in a restaurant or banquet facility to a large party are still subject to sales tax.
Businesses who sell items to farmers, nonprofit agencies, manufacturers for equipment and parts used in manufacturing, and political subdivisions need to request a copy of an exemption certificate to substantiate they are exempt from sales tax. The exempt certificate should be retained for documentation upon audit by the Missouri Department of Revenue.
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