How To Get A Missouri Sales Tax Exemption Certificate [2023 Guide]

A Missouri Sales Tax Exemption Certificate is a document that allows a business to purchase goods and services tax-free from suppliers for the purpose of reselling those goods and services. The certificate is also sometimes referred to as a “resale permit” or a “reseller’s permit.”

Learn more about what the certificate is, how to get one, and more.

What is a Sales Tax Exemption Certificate?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The state sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise. The collected sales tax is then sent by the retailer to the Missouri Department of Revenue.

For instance, when a hardware store in Missouri orders a new supply of power tools to sell in their shop, by holding a resale certificate, the hardware store owner won’t pay sales tax on this procurement. This is because these power tools are not an end purchase for the store, but are inventory meant to be sold to the ultimate consumer.

When a customer chooses to buy one of these power tools from the store, the retailer will charge sales tax to the customer based on the full price of the tool. This added charge is the sales tax that Missouri imposes on retail transactions.

The hardware store, in its role as the retailer, has the duty to collect this sales tax from all of their transactions. Then, usually at the end of each month, the hardware store sends the collected sales tax to the state.

The purpose of the certificate is to provide evidence of why sales tax was not collected on a transaction. Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license. In order for the supplier to allow the tax-exempt purchase, the seller needs proof the buyer intends to resell the product by providing a valid resale certificate.

The sales tax exemption is only intended to be used for inventory that will be resold and not intended for the tax-free purchase of items used in normal business operations, such as paper, pens, etc.

Getting Started

Before a business starts selling products or providing taxable services, it must first get a Missouri Sales Tax License from the Missouri Department of Revenue. The Sales Tax License is sometimes referred to as a seller’s permit, sales tax number, or sales tax permit.

How to fill out the Missouri Sales and Use Tax Exemption Certificate

Filling out the Missouri Sales and Use Tax Exemption Certificate (Form 149) is pretty straightforward but is critical for the seller to gather all the information.

If audited, the Missouri Department of Revenue requires the seller to have a correctly filled out Form 149 Sales and Use Tax Exemption Certificate.  Without it correctly filled out, the seller could end up owing sales taxes that should have been collected from the buyer in addition to penalties and interest.  

Steps for filling out the Form 149 – Missouri Sales and Use Tax Exemption Certificate

Step 1 – Begin by downloading the Missouri Sales and Use Tax Exemption Certificate Form 149 
Step 2 – Identify the name, phone number, contact person, Doing Business As Name (DBA), address, and Missouri Tax ID Number of the purchaser
Step 3 – Indicate the products or services the purchaser will be purchasing tax-exempt and what the purchaser’s business does
Step 4 – Include the name, phone number, contact person, DBA, and address of the seller
Step 5 – Indicate the reason for the sales tax exemption:

• Purchasing tangible personal property for resale
• Purchasing taxable services for resale
• Purchases are made by a manufacturer or wholesaler for wholesaler; or
• Purchases are made by a motor vehicle dealer

Step 6 – If the business is a manufacturer, check the appropriate boxes (not typically applicable for retailers)
Step 7 – The Other section is used when purchasing specific products that are tax-exempt, which include certain agricultural products, common carriers, locomotive fuel, air or water pollution goods, or commercial motor vehicles or trailers.
Step 8 – The purchaser will certify the property being purchased is for resale and sign and date the certificate. 

Fillable Form 149 Sales and Use Tax Exemption Certificate