Do You Need to Get a Sales Tax Permit in Mississippi?

by | Nov 20, 2019

Quick Answer: You need to get a sales tax permit in Mississippi if you meet economic or physical presence nexus requirements as determined by the state. Read on for more detailed information.  

What is Sales Tax Nexus Anyway?

Your business owes sales tax in any state where it has “sales tax nexus”. In short, if you have sales tax nexus you need to collect and remit sales tax. If you don’t have sales tax nexus, you generally don’t need to get a permit. 

Sales tax nexus is a legal term that means you have crossed a threshold and now have a sales tax collection responsibility in the state. Nexus can be created by having a physical presence, economic presence, or by other factors.  Nexus rules vary by state and retailers have specific nexus rules based on where they have people, property or inventory.  

 

What Should You Do Once You Determine You Have Sales Tax Nexus?

Once you determine that you have sales tax nexus in Mississippi, your next step is to register for a sales tax permit in the state.  Check out our blog post on getting a sales tax permit in Mississippi for more information about that process.  If you are not interested in doing the work of getting the permit yourself, TaxValet can handle the permit registration for you with our Sales Tax Permit Registration service.  

 

Common Ways to Have Sales Tax Nexus in Mississippi

1. Economic nexus in Mississippi

If you made $250,000 of sales in Mississippi over any 12 month period, then you are required to register for, collect, and pay sales tax to the state. If you meet this threshold, it does not matter if you have a physical presence in Mississippi.  Nexus has been created based on your volume of sales. 

For more information, please see the Mississippi Department of Revenue Services FAQ: What is Nexus?

If you need help determining which states you have crossed economic nexus thresholds, check out our Sales Tax Starter Kit service.

2. Physical presence nexus in Mississippi

The following creates physical presence nexus in Mississippi. If you have any of the following in Mississippi, you will need to get a sales tax permit:

  1. Own business property located in Mississippi.
  2. The business is represented in the state by employees or agents of the business who service customers in Mississippi or solicit or accept orders for merchandise.

For more information, please see the Mississippi Department of Revenue Services FAQ: What is Nexus?

If you need help determining which states you have a physical presence in, check out our Sales Tax Starter Kit service.

Check Out Our Done-for-You Sales Tax Service

Let our team of professionals help you determine where you have nexus, register for sales tax permits, and file your returns.

Do You Need a Sales Tax Permit in Mississippi If You Only Sell on Marketplaces?

As of the publication of this blog, Mississippi is not a marketplace collection state. Subsequently, Amazon, eBay, and other marketplace facilitators are NOT required to collect or pay sales tax in Mississippi on your behalf. Therefore, you, as the seller are responsible for collecting and remitting sales tax due on sales into Mississippi if you are required to have a sales tax permit.  

If you are an e-commerce seller who is unsure of where you need to get a sales tax permit, check out our Sales Tax Starter Kit service.

Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.

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