Two recently enacted provisions affect Missouri sales and use tax reporting. Businesses that operate in Missouri or conduct substantial business activities with Missouri businesses should take note; both changes go into effect soon.
Usual and Customary Delivery Charges
The recently enacted Senate Bill No. 16 clarifies the definition of gross receipts, which are subject to sales and use tax. It specifies that gross receipts do not include usual and customary delivery charges stated separately from the sale price. These include charges where delivery is necessary to fulfill the purchase or item ordered (such as the delivery of a concrete purchase). Changes to the gross receipts definition are effective Aug. 28. 2017.
Missouri Adopts Integrated Tax System
The Missouri Department of Revenue is adopting a new integrated tax system to allow the department to more easily scan and capture information on paper returns. To prepare for the integrated tax process, Missouri Department forms for Sales Tax (Form 53-1), Consumer’s Use Tax (form 53-C) and Vendor’s Use Tax (Form 53-V) will have new formatting. Jurisdiction codes are also changing, so filers that generate their own sales and use tax returns need to take note. The new codes for every city, county or district will be listed on the Department’s rate chart.
The new standards take effect after Sept. 1, 2017, and the new forms can be found on the Missouri Department of Revenue website. Excel files formatted with location codes and rate data will also be accepted. The Excel files can be found here.
For More Information
For more information about how Missouri’s sales tax updates affect your business, please contact us.
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