Cross $100,000 in Missouri sales, and economic nexus triggers. No warehouse, no office, no physical presence required. For e-commerce sellers shipping into the Show-Me State, this single threshold determines whether you’re collecting and remitting sales tax or risking penalties.
Since the 2018 South Dakota v. Wayfair decision reshaped sales tax nationwide, Missouri established clear economic nexus rules for remote sellers, marketplace facilitators, and referrers. As the final state to enact economic nexus legislation, Missouri’s requirements reflect lessons learned from 44 other states.
That’s where Hands Off Sales Tax (HOST) comes in. With over 25 years managing multi-state compliance, we help e-commerce businesses determine nexus, handle registrations, and file returns across all 45+ sales tax states, including Missouri’s requirements.
What Is Economic Nexus?
Economic nexus means a state can require you to collect sales tax based solely on your economic activity, measured by revenue or transaction volume. No warehouse, office, or employees needed. Exceed the state’s threshold by selling to customers in that jurisdiction, and you’ve established nexus.
The Wayfair ruling gave states authority to impose economic nexus standards on remote sellers. Before this, only physical presence created nexus. Now, crossing revenue thresholds obligates you to collect tax from customers there.
A California seller shipping to Missouri customers faces Missouri sales tax obligations once they hit the threshold, even without ever setting foot in the state.
Missouri’s Economic Nexus Threshold
Missouri’s economic nexus threshold is $100,000 in gross sales to Missouri customers within the current or previous calendar year. No transaction count requirement. Only revenue matters.
How Quarterly Monitoring Works
At the end of each calendar quarter, calculate your gross receipts from taxable sales in Missouri over the preceding 12-month period. If you exceed $100,000, you must register and begin collecting. No later than three months after the quarter’s close.
Important: Only taxable sales count toward the threshold. Nontaxable wholesale sales are excluded from the calculation.
The 12-Month Collection Rule
Once you exceed the threshold and begin collecting, you’re required to collect and remit Missouri tax for a minimum of 12 months, even if your sales drop below $100,000 during that period. You must continue collecting “for as long as the vendor is engaged in business activities” in Missouri.
Who Must Collect Missouri Sales Tax
Remote Sellers: Any out-of-state seller shipping taxable goods to Missouri customers must collect tax once they exceed $100,000 in annual Missouri sales. This includes direct-to-consumer brands with no Missouri warehouse or staff.
Use Tax vs. Sales Tax: Remote sellers collect Missouri’s use tax (typically 4.225% state rate only), not the combined sales and local tax that in-state sellers charge. If a local jurisdiction hasn’t passed a local use tax, out-of-state sellers collect only the state portion.
Marketplace Facilitators: Platforms like Amazon, eBay, and Etsy collect and remit sales tax on behalf of third-party sellers if the facilitator exceeds the $100,000 threshold. Most major marketplaces handle this automatically.
If you sell through your own website and marketplaces, you only collect Missouri tax on direct website sales (assuming you meet the threshold independently). Marketplace sales where the platform collects tax don’t require duplicate collection.
Referrers: Missouri applies economic nexus to businesses that refer customers to Missouri retailers and receive commissions above $10,000 in the previous 12 months, primarily affecting affiliate marketers.
What’s Taxable in Missouri
Missouri imposes sales tax on most tangible personal property and some services.
Taxable: Clothing, electronics, furniture, vehicles, automotive parts, most prepared food and restaurant meals.
Exempt: Prescription drugs, medical devices, most unprepared groceries, residential utilities, agricultural machinery, manufacturing equipment.
Sales Tax Holidays: Missouri offers two annual sales tax holidays:
- Back-to-School (first Friday in August through Sunday): Clothing under $100, school supplies under $50, computers under $1,500
- “Show Me Green” (April 19-25): ENERGY STAR certified appliances
HOST’s consultation services help clarify exactly what you should tax based on your specific product mix, preventing costly configuration errors.
Missouri Sales Tax Rates
Missouri has a state base rate of 4.225%. Local jurisdictions add their own rates, making combined rates vary significantly.
Combined rates range from 4.225% to over 10%:
- Kansas City: 9.125%
- St. Louis: 9.679%
- Springfield: 8.35%
With over 350 local taxing jurisdictions, calculating the correct rate requires knowing the precise delivery address. Rates can change block by block.
Sales tax software like TaxJar and Avalara automatically calculate correct rates based on customer address. However, misconfigured software can apply wrong rates or overtax exempt items.
HOST offers a Free Sales Tax Software Review to audit your configuration, ensuring accurate calculations.
How to Register for Missouri Sales Tax
Missouri sales tax registration is handled through the Missouri Department of Revenue’s online portal at dor.mo.gov.
Required information includes: FEIN or Social Security Number, business legal name and DBA, business structure, physical business address, description of business activities, estimated Missouri sales volume, and bank account information.
The process typically takes 2-3 weeks. Missouri issues your Certificate of Registration electronically. No registration fee.
HOST handles Missouri registrations end-to-end! We complete paperwork, navigate the portal, and ensure you receive your certificate without delays.
Missouri Filing Requirements and Deadlines
Filing Frequency
Missouri assigns filing frequency based on state tax liability:
- Monthly: State tax collected of $500 or more per month
- Quarterly: State tax collected between $200-$500 per quarter
- Annual: State tax collected less than $200 per quarter
Filing Deadlines
- Monthly: Returns due by the 20th of the following month
- Quarterly: Returns due by the 20th of the month following the quarter
- Annual: Returns due January 20 of the following year
Penalties and Benefits
Penalties:
- Late filing: 5% per month, up to 25% maximum
- Late payment: 5% of unpaid tax
- Interest: 4-5% annually on unpaid balances
Timely Filing Discount: Missouri offers a 2% discount for on-time filers.
HOST files your Missouri returns on schedule (monthly, quarterly, or annually), ensuring you never miss a deadline.
Managing Multi-State Compliance Including Missouri
Missouri is rarely the only state where you’ll have nexus. Most growing e-commerce businesses cross thresholds in 15-25 states within their first few years.
Each state has different thresholds, processes, frequencies, taxability rules, and rates. Managing this manually creates significant risk:
Nexus Monitoring: Quarterly calculations across 45+ different thresholds and flagging registration requirements.
Registration Complexity: Every state has unique requirements and processing times (some take 6-8 weeks).
Ongoing Filing: Different due dates, frequencies, and formats across states consume 30+ hours monthly—time that generates zero revenue.
Software Limitations: Automation tools calculate rates but don’t handle nexus analysis, registrations, notices, audits, or filing strategy.
HOST provides comprehensive multi-state management. We monitor nexus in all 45+ sales tax states, register you everywhere needed, configure software correctly, and file all returns on schedule.
HOST: Your Partner for Missouri and Multi-State Compliance
What HOST Delivers:
- Nexus Analysis: We analyze your sales data to determine precisely where you’ve met thresholds—Missouri and all other states.
- Sales Tax Registration: We handle Missouri registration and all other required state registrations, navigating each state’s unique portal.
- Sales Tax Filings: We prepare and file your Missouri returns monthly, quarterly, or annually—including local and special district returns.
- Software Optimization: We review and optimize your TaxJar, Avalara, or other automation tools to ensure accurate calculations.
- Notice Management: We interpret and respond to Missouri Department of Revenue notices, protecting you from penalties.
- Audit Defense: We’re your trusted partner in resolving Missouri sales tax audits.
- Voluntary Disclosure Agreements: If you discover past Missouri obligations, we file VDAs to limit lookback periods and abate penalties.
We’ve been 100% focused on sales tax since 1999. Founded by Mike Espenshade, with parent company TaxMatrix serving North America’s largest companies, we bring enterprise expertise to e-commerce sellers of all sizes.
You handle the sales, we handle the tax.
Ready to Get Missouri Compliant?
Whether you’ve just crossed Missouri’s $100,000 threshold or you’re managing nexus in multiple states, the right sales tax partner ensures compliance supports growth.
Contact HOST today to discuss your Missouri and multi-state compliance needs.
Want to learn more? Get our “10 Sales Tax Mistakes E-Commerce Sellers Make” e-book.
Frequently Asked Questions
What is Missouri’s economic nexus threshold for sales tax?
Missouri’s threshold is $100,000 in gross sales to Missouri customers within the current or previous calendar year. No transaction count requirement. Calculate your threshold quarterly by reviewing the preceding 12-month period. Nontaxable wholesale sales don’t count toward the threshold.
When did Missouri’s economic nexus law take effect?
Missouri’s law took effect January 1, 2023, making it the final state to enact economic nexus legislation. Sellers who exceeded $100,000 in 2022 were required to register by January 1, 2023.
Do I need to collect Missouri sales tax if I sell through Amazon?
If you sell exclusively through Amazon or other marketplace facilitators, the platform collects and remits Missouri sales tax on your behalf. However, if you also sell through your own website, you must collect Missouri use tax on those direct sales once you exceed $100,000 independently.
What’s the difference between Missouri use tax and sales tax?
Remote sellers (out-of-state businesses) collect use tax, typically only the 4.225% state rate. In-state sellers collect sales tax, the combined state and local rate. If a Missouri locality hasn’t passed a local use tax, remote sellers only collect the state portion.
How often do I need to file Missouri sales tax returns?
Missouri assigns filing frequency based on state tax liability: monthly filers (state tax of $500+/month), quarterly filers ($200-$500 per quarter), or annual filers (less than $200 per quarter). Missouri notifies you of your assigned frequency after registration.
What happens if I didn’t know about Missouri’s economic nexus?
If you’ve exceeded Missouri’s threshold but haven’t registered, you may owe back taxes for past periods. Missouri can assess up to three years of back taxes plus penalties and interest. Filing a Voluntary Disclosure Agreement (VDA) can limit the lookback period and abate penalties. Contact HOST to discuss VDA options and minimize liability while getting compliant.
