What is Exempt from Sales Tax in Missouri?

What is exempt from sales tax in Missouri?
In general, materials, replacement parts, and equipment purchased for use directly upon and for the repair and maintenance or manufacture of, motor vehicles, boat/vessel, railroad rolling stock, or aircraft engaged as common carriers of persons or property, are not subject to tax.
Read more on dor.mo.gov

One of the US states that levies sales tax on a variety of goods and services is Missouri. In Missouri, some items are excluded from paying sales tax. The fact that these exemptions cover both municipal and state sales taxes makes them even more valuable to consumers.

Groceries are one of the main items exempt from sales tax in Missouri. In Missouri, there is no state sales tax on food as of 2021, however municipal sales tax rates still apply. Any food or beverage meant for human consumption is exempt from this rule, including substances used in cooking such as wheat and sugar. Sales tax is still applicable to prepared foods, such as meals from restaurants or fast food outlets.

Prescription medicines are another item that is free from sales tax in Missouri. These medicines need to be prescribed by a qualified healthcare provider. Aspirin and other over-the-counter medications are still subject to sales tax. In Missouri, wheelchairs and other medical supplies and equipment are also free from sales tax.

Numerous other items are free from Missouri’s sales tax in addition to those mentioned above. These comprise goods like those sold in retail outlets that are bought with the intention of reselling them. Other exempt purchases include those made by non-profit institutions like churches and charities as well as those made for use in manufacturing or agriculture.

You need a Missouri tax identification number in order to take advantage of these exemptions. Businesses and people who sell taxable products and services in Missouri are given a Missouri tax ID number, sometimes referred to as a sales tax number. You must register with the Missouri Department of Revenue in order to receive a Missouri tax ID number. This can be done via the department’s website, online, or by completing a paper application and submitting it in person, by mail, or both. Your tax ID number, which you will use to report and pay sales tax on taxable products, will be sent to you once you have enrolled.

In conclusion, a number of things are free from Missouri’s sales tax. These include things like food, prescription medications, things bought for resale, things bought by charities, and things bought for use in manufacturing or farming. You must register with the Missouri Department of Revenue in order to receive a Missouri tax ID number, which is required to take advantage of these exemptions.

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