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US Missouri targets foreign sellers with sales tax

The US state of Missouri is considering bringing non-resident taxpayers into the state sales tax net from 2023.

A draft bill passed by the House and Senate on 14 May 2021 would levy out-of-state taxing obligations where a seller or facilitating marketplace has sales above $100,000 per annum. This would come into effect from 1 January 2023. If enacted, the bill would require impacted marketplace facilitators to report facilitated sales to the Missouri Department of Revenue (Department) separately from their own direct sales to Missouri customers.

Missouri would be required to provide an accurate tax map of the varying county and city taxing rates and geographies which any seller would be able to rely on.

In 2018, the US Supreme Court ruled that states could impose ‘economic nexus’ test on evaluating whether sellers or marketplaces must charge and remit local sales tax. This new rule meant such seller need not have just a local presence (‘physical nexus’) to fall within the taxing rules.

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