The Mississippi Department of Revenue requires most businesses to collect sales taxes on various goods and services and remit them to the state. However, certain types of goods and items can be purchased using a Mississippi resale certificate as sales tax exempt, provided your business meets the qualifications for such an exemption.
What Is a Mississippi Resale Certificate?
When it comes to obtaining a Mississippi resale certificate, the Mississippi Department of Revenue does things slightly differently from other states. In most other states, a business would first obtain their sales tax permit and then their resale certificate.
In Mississippi, all a business has to do is apply for and obtain their sales tax permit. They do not need to apply for a separate resale certificate. Instead, their seller’s permit also functions as a Mississippi resale certificate.
Who Needs a Mississippi Resale Certificate?
Even though the Mississippi Department of Revenue does not issue a separate Mississippi resale certificate, retailers will still want to obtain a tax exemption on the products and goods they intend to resell to others. Otherwise, sales taxes would be collected twice on the same products and goods.
How Do Businesses in Mississippi Get a Tax Exemption?
Any business that intends to purchase products and goods and resell them simply can use their sales tax permit as a Mississippi resale certificate. Any business with a valid seller’s permit merely provides a copy of it to claim a sales tax exemption on goods that will be resold to others.
Even out-of-state businesses can obtain a tax exemption in Mississippi on goods they intend to resell to their customers by supplying a copy of their state-issued seller’s permit or sales tax permit.
Do Sales Tax Permits in Mississippi Expire?
A sales tax permit in Mississippi does not expire as long as the business is in good standing with the state. The holder must also maintain the same business name and location for which the sales tax permit was issued.
If a business owner decides to change their business name or location, they must update this information with the Mississippi Department of Revenue and obtain a new sales tax permit. Furthermore, if the business ceases operations for an extended period, they may need to reapply to reactivate their sales tax permit or may be required to obtain a new one.
Other Names for a Sales Tax Permit in Mississippi
Some of the more common names for a sales tax permit in Mississippi include:
- Mississippi Seller’s Permit
- Mississippi Seller’s Certificate
- Mississippi Sales and Use Tax Certificate
- Mississippi Sales and Use Tax License
- Mississippi Sales Tax ID
- Mississippi Sales Tax License
- Mississippi Certificate of Authority
How Do I Get Sales Tax Exemptions Out-of-State?
Since Mississippi does things differently from other states, obtaining a tax exemption for out-of-state inventory purchases is similar to in-state purchases. Simply provide the supplier or vendor with a copy of your Mississippi seller’s permit.
Should the out-of-state supplier or vendor ask for a Mississippi resale certificate, just let them know the Mississippi Department of Revenue does not issue them. Instead, it allows Mississippi business owners to use their seller’s permit as a resale certificate.
However, 10 states do not honor out-of-state resale certificates and will not honor your Mississippi sales tax permit. Three of these states nearby Mississippi include Florida, Louisiana, and Alabama.
So, if you have suppliers and vendors in any of these three states, you will need to obtain a resale certificate issued by that state to receive sales tax exempt status on any inventory items you purchase.
How Do I Accept Sales Tax Permits in Mississippi?
When you have customers who want to purchase goods from your business they intend to resell to others, it is your responsibility to verify they have a valid sales tax permit. The Mississippi Department of Revenue has an online application tool you can use to confirm the permit is valid.
You will also need to keep records of all sales tax-exempt transactions you complete. Your records should include the business’s name, address, and phone number and their sales tax permit number.
In addition, you want to retain a copy of the sales receipt indicating which items you did not collect sales taxes on. Furthermore, you can only waive sales taxes on items the customer intends to resell. Any items they purchase as part of their day-to-day business operations should be charged sales taxes.
How to Get a Seller’s Permit in Mississippi Using FastFilings
When you are opening a new business, the easiest way to get a seller’s permit in Mississippi is to use FastFilings using these simple steps:
- Step 1: Fill out our secure online application form.
- Step 2: Upload any necessary documentation.
- Step 3: Provide a valid payment method.
Upon submission of your application, we will review your application for completeness. If we need further information, we will contact you directly.
Once we verify your application is complete correctly, we fill out the correct application form for a seller’s permit for the state of Mississippi. Finally, we file the application electronically, so you can have your seller’s permit in a few business days once the state approves it.
Get your seller’s permit in Mississippi by submitting your online application today at FastFilings. If you require further assistance or have any questions, please feel free to contact us by filling out our online contact form.