Registering to Collect and Pay Sales Tax in Mississippi

If you sell products in Mississippi that are subject to the state sales tax, you must apply for a sales tax permit, collect and pay the sales tax. According to the Mississippi Department of Revenue, the sales tax applies on all sales of tangible personal property in the state, unless the item is specifically exempt. You can find a list of the items that are exempt from sales tax under Sales Tax Exemptions on the Mississippi Department of Revenue website.

Certain services that are performed in connection with the sale and installation of tangible personal property are also subject to sales tax. Also taxable are repairs of tangible personal property; the rental or lease of personal property such as vehicles or equipment; the rental of accommodations in hotels, motels, and campgrounds; charges for admission to amusement, sports or recreation events; plumbing, electrical, and heating and air conditioning work; pest control; computer software services; dry cleaning; parking lots; and contracting.

According to the Mississippi Department of Revenue, sales and use tax will be available for online access through the TAP system starting in October, 2013. But you can register for a new sales tax account online. A packet with your sales tax permit and information on how to file will be mailed to you.

Sales tax permits are for a specific location and if you have more than one business location you need a separate permit for each location. If you move your business location you should notify the Mississippi Department of Revenue and you may need a new permit.

If you sell at a flea market or similar type of event, you should report your sales to the operator or promoter. That person is responsible for collecting and remitting the sales tax collected by all the vendors who participate in the event.

If you make sales that are shipped or delivered directly to a customer outside Mississippi, you do not have to collect Mississippi sales tax. In that case you should keep the sales slip and shipping invoice to show that the sale was out of state.

If you have a business outside of Mississippi that makes sales in Mississippi, you are required to register for, collect and pay sales tax if you have nexus in Mississippi. You would have nexus if you own business property in Mississippi or you have employees or agents in the state who service customers or solicit or accept orders.

If you purchase merchandise for resale, you can use your sales tax permit information to purchase the merchandise tax-free from the supplier.

Sales tax returns are due by the 20th of the month following the reporting period. Generally, if you have average sales taxes of $300 or more per month you will have to file monthly. If you have less than that amount you could file quarterly or annually. You have to file a sales tax return for each reporting period even if you do not owe any tax. For example, if you have a seasonal business, you will have to file sales tax returns all year, according to your filing frequency.


Sales and Use Tax, Mississippi Department of Revenue

Sales Tax Exemptions, Mississippi Department of Revenue

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