Tax Law Updates | New Statutes, Regulations, and Rulings
August 27, 2010
Missouri Revenue Dept: Drop Shipments Originating Out-of-State to an Out-of-State Customer Not Subject to Sales or Use Tax
Missouri Department of Revenue Letter Ruling on Out-of-State Shipments to an Out-of-State Customer
LR 6313, 6/24/2010
In a private letter ruling, the Missouri Department of Revenue (“DOR,” or “Department”) has stated that a shipment of products from a company’s out-of-state supplier to its out-of-state customer is not liable for sales tax.
By way of background, Applicant sold refrigeration equipment to Customer. Customer directed Applicant to ship the equipment to the End-User. The equipment was shipped from the Supplier’s location outside Missouri to the End-User outside Missouri. Customer never took possession of the equipment in Missouri.
The issue is, should Applicant collect and remit Missouri sales tax on its sale of refrigeration equipment to its customer?
In responding…
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