Mississippi does not recognize resale certifications from other states. The state of Mississippi does not accept resale certificates from other jurisdictions. A Mississippi resale certificate must be obtained and presented to the seller if you are a merchant buying items in Mississippi to resell in another state in order to avoid paying sales tax.
So how do you pay the sales tax in Mississippi? You must pay sales tax on your purchases if you aren’t buying anything to resell. In Mississippi, the amount of sales tax is determined as a percentage of the cost of taxable products and services. Mississippi’s statutory sales tax rate is now 7%, however local sales taxes can bring the overall amount up to 8.5%. In Mississippi, you have two options for paying sales tax: you can either include it in the price you charge clients or you can pay the Mississippi Department of Revenue directly.
Sales of tangible personal property in Mississippi are subject to the tax regulations in Mississippi Tax Code 92. Retailers are obligated by this code to assemble and send sales tax on all taxable sales. Any sales made in any of these ways is included in this. The code also mandates that retailers maintain correct sales records and deliver them upon request to the Mississippi Department of Revenue.
When a company has a physical presence in Mississippi, nexus is created. This can involve hiring staff, leasing property, or keeping an inventory. The company is required to collect and send sales tax on all taxable transactions conducted in Mississippi after nexus is established.
Last but not least, it is not easy to determine which state has the lowest sales tax. States have different sales tax policies, and others have no sales tax at all. Alaska has the lowest state and local sales tax combined rate as of 2021, with a total rate of 1.76%. Alaska’s economy, however, is mostly based on oil money, and other taxes make up for the absence of sales tax income.
In conclusion, you must obtain a Mississippi resale certificate if you intend to buy items to resell in Mississippi. Resale certifications from other states are not recognized by Mississippi. You must pay sales tax on your purchases if you aren’t buying items to resell. You can do this by adding it to the price you charge clients or by paying it directly to the Mississippi Department of Revenue. Keep in mind that retailers are required by Mississippi Tax Code 92 to collect and remit sales tax on all taxable sales, and that a company has a nexus with the state when it has a physical presence there.
Yes, Mississippi levies a sales tax online. Even if the store is based outside of Mississippi, they are still compelled to collect sales tax from customers who make purchases there. Locations in Mississippi have different sales tax rates.