Missouri Sellers Must Report and Remit Tax on Marketplace Facilitator Sales

Jul 28th, 2021

The Missouri Department of Revenue ("Department") recently ruled that a marketplace seller ("seller") must report all sales conducted through marketplace facilitator ("facilitator") platforms on its Vendor's Use Tax Return and remit taxes collected directly to the state. The seller utilizes a facilitator to market and sell its products. The facilitator does not buy products from the seller for resale or hold physical inventory for the seller. The facilitator only facilitates the sale to the end customer. The facilitator then collects tax on behalf of the seller and remits the tax to the seller.

Missouri requires vendors to file a tax return of all taxes collected for the previous quarter. A "vendor" is any person engaged in making sales of tangible personal property through agents, advertising, or mail order for storage, use, or consumption in the state. When the facilitator operates as an agent of the seller, the seller becomes bound to the sales the facilitator facilitates. So, the seller must report all sales conducted by its agents on its Vendor's Use Tax Return and remit taxes collected directly to the state. Please note that beginning January 1, 2023, the laws on sales tax and marketplace facilitators will change. After that date, this ruling no longer applies.

https://www.ttrus.com/sites/default/files/newspdf/Missouri_Sellers_Must_Report_and_Remit_Tax_on_Marketplace_Facilitator_Sales_1627505841.pdf