We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Mississippi, and if so, how best to tackle the sales tax situation in the Magnolia State.You only have to begin thinking about Mississippi sales tax if you have sales tax nexus in Mississippi. “Sales tax nexus” is just a fancy way of saying “significant presence” in a state. Mississippi considers a seller to have sales tax nexus in the state if you have any of the following in the state: You can click here to read exactly what the Mississippi Department of Revenue (Mississippi’s taxing authority) has to say about what constitutes sales tax nexus in Mississippi. You’ve probably read this far because you realized you have sales tax nexus in Mississippi. Your next step is to determine if what you’re selling is even taxable. Services in Mississippi are generally not taxable. So if you’re a photographer or a framer, you’re in luck and you don’t have to worry about sales tax.

But watch out – if the service you provide includes creating or manufacturing a product, or installing or repairing a product you’ve sold, you may have to deal with the sales tax on products. Tangible products are taxable in Mississippi, with a few exceptions. These exceptions include certain prescription medicine, medical devices, and items used in manufacturing. So if you sell widgets, then charge sales tax to your Mississippi customers.handyman services in bedford But if you’re a web developer, don’t charge sales tax to your Mississippi customers.noble handyman services If you have sales tax nexus in Mississippi and your products are taxable, your next step is to register for a sales tax permit.business for sale latrobe pa

Sellers with sales tax nexus in Mississippi must apply for a Mississippi sales tax permit. Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Mississippi. So you’ve determined that you have sales tax nexus in Mississippi and what you’re selling is taxable. handyman service in northern virginiaAnd you’re all set and registered for your Mississippi sales tax permit.business for sale meadville pa The next step is to determine how much sales tax to collect.business for sale sippy downs The sales tax rate you collect in Mississippi depends on whether you are based in Mississippi or out-of-state.

Mississippi is an origin-based sales tax state. So if you live in Mississippi, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located. /mobile on your mobile device. Example: You live and run your business in Tupelo, MS, in the 38801 zip code. The sales tax rate in Tupelo is made up of the 7% Mississippi sales tax rate plus the .25% Tupelo rate for a total of 7.25%. You would charge all of your Mississippi customers, no matter where in the state they live, that 7.25% sales tax rate. If you have more than one location in Mississippi, then you would base the sales tax rate you charge on the point of origin of your sale. If you are based outside Mississippi, but have sales tax nexus and are required to charge sales tax in Mississippi, you are a “remote seller” and only required to charge “use tax.” Use tax is very similar to sales tax except that it’s charged by remote sellers. Mississippi’s use tax rate is 7%.

As long as the item you are shipping is taxable, then Mississippi considers the shipping charge a part of the sale and requires that merchants collect sales tax on the shipping charges along with the price of the item. Read a full explanation of sales tax on shipping in Mississippi here. Caption: Top 20 Most Populous Cities in Mississippi and their Sales Tax Rates When you file and pay Mississippi sales tax depends on two things: your assigned filing frequency and your state’s due dates. States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state. In Mississippi, you will be required to file and remit sales tax either monthly, quarterly, or annually. How often you are required to file sales tax in Mississippi follows this general rule: Mississippi sales tax returns are always due the 20th of the month following the reporting period.

If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day. *indicates a due date pushed back due to a weekend or holiday Click here for more info on Mississippi sales tax filing due dates in 2017. When it comes time to file sales tax in Mississippi you must do three things: We’ll walk you through these steps. Calculating how much sales tax you should remit to the state of Mississippi is easy with TaxJar’s Mississippi sales tax report. All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Mississippi sales tax return will be waiting for you in TaxJar. All you have to do is login! There are a few more things you should know about sales tax in Mississippi: Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

Mississippi requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns. Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In Mississippi, as long as the sales tax is paid on time, a discount of 2% of tax due, not to exceed $50 is allowed. Click here for more about state sales tax discounts. Mississippi has 2 sales tax holidays in 2017: July 28-29, 2017: Back to School Sales Tax Holiday August 25-27, 2017: Firearms, Ammunition and Hunting Supplies sales tax holiday Check here for more information about Mississippi’s sales tax holidays including how to handle sales tax holidays as an online seller.You’ve mastered Mississippi sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.