Donated Items Not Taxable in Missouri

Tuesday, August 29th, 2017

 
 
Donation box filled with clothing.
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Missouri
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The Missouri Department of Revenue recently ruled that taxpayers do not have to charge sales tax on donated items.

The taxpayer was a retail grocery store chain that made donations to exempt and non-exempt organizations. These organizations received donations for a certain dollar amount to be used at the stores. If the total purchase price was over the donated amount, the excess was paid for by the organizations.

The ruling determined that no tax was due on the donations because they are not retail sales. However, tax was due on any excess amount if the purchaser was a non-exempt organization.

Note that although the taxpayer did not have to charge tax on the donations, it was responsible for paying tax on items purchased for resale but taken out of inventory for donation.

www.ttrus.com/sites/default/files/newspdf/Missouri_Department_of_Revenue_1504024837.pdf


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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