Taxes / Seller's permits by state / Mississippi
Do I need a seller's permit to sell on eBay or Poshmark in Mississippi?
Mississippi makes marketplace facilitators with more than $250,000 of sales into the state register and collect the tax on sales they facilitate, but the Department of Revenue pages we checked don't say whether a seller whose only sales go through marketplaces must also hold a permit. All in-state businesses with retail sales in Mississippi must register for a sales tax permit, which is free and doesn't expire; the Department says even a hobby seller selling retail to the public must collect, though at flea markets and antique malls the operator collects and reports the tax.
Mississippi calls it a sales tax permit, issued by the Mississippi Department of Revenue.
General information, not tax or legal advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Mississippi in short
- Sell only on marketplaces that collect the tax:
- Not stated on the state's pages we checked
- Also sell direct (own site, Facebook, flea market):
- Yes: the state says to register; no fee
- Resale certificate:
- No set state form; the state lists what a certificate must show
- Garage and occasional sales:
- Exempt
- Where to register:
- Mississippi Taxpayer Access Point (TAP)
If you sell only on eBay, Poshmark and other marketplaces
Notice 72-20-04 requires marketplace facilitators over $250,000 in any consecutive 12 months to register and collect use tax on Mississippi sales they facilitate. It and the Department's FAQ don't address whether a seller with only facilitated sales must hold its own sales tax permit.
The rule: House Bill 379 (2020); Notice 72-20-04 (June 25, 2020).
Mississippi's regular retail sales tax rate is 7%, with reduced rates and exemptions set by law. Since July 1, 2020 (House Bill 379, the Mississippi Marketplace Facilitator Act of 2020), facilitators with more than $250,000 of sales into Mississippi in any 12 months register for a use tax account and collect on sales they facilitate.
Sources: Notice 72-20-04, Notice to Marketplace Facilitators (June 25, 2020); Business Tax Frequently Asked Questions; Mississippi Sales and Use Taxes.
If you also sell direct: your own site, Facebook, flea markets, consignment
All in-state businesses with retail sales in Mississippi must register for a sales tax permit before engaging in business, with a separate permit for each location. The Department says you must collect tax even if selling is just a hobby, and you need a sales tax account number to sell at a one-time event. At a flea market, antique mall or similar event, though, the operator or promoter is the seller and collects and reports the tax for everyone selling there.
- Fee:
- No fee: the Department says there is no fee to obtain a sales tax permit.
- Renewal:
- The permit doesn't expire or need renewal as long as you stay in the same business at the same location; it can be revoked for not filing or paying.
- Register:
- Mississippi Taxpayer Access Point (TAP)
"All in-state businesses that have retail sales in Mississippi must register for a sales tax permit and number."
"No, there is no fee to obtain a sales tax permit."
"The operator or promoter of a flea market, antique mall or similar type event is considered the seller and is responsible for collecting and remitting the sales tax collected by persons selling at these events."
Sources: Registration Information for Sales and Use Tax Applicants; Mississippi Sales and Use Taxes; Business Tax Frequently Asked Questions; Notice 72-20-04, Notice to Marketplace Facilitators (June 25, 2020).
Resale certificate: buying inventory without paying sales tax
- The form:
- No set state form; the state lists what a certificate must show
- Do you need your own permit to give one?
- Yes: the state ties the certificate to the buyer's own permit or account number
Mississippi has no resale certificate form: the Department says a business buys merchandise for resale tax-free by giving the supplier its sales tax permit information, and the supplier keeps the buyer's sales tax number with a description and amount of what was sold. Wholesale sales are sales to licensed retail merchants for resale; a buyer in Mississippi must hold a permit for the sale to count as wholesale.
Thrift stores, estate sales and yard sales
The state pages we checked don't say anything specific about using a resale certificate at a thrift store, estate sale or yard sale. A certificate is given to a seller who would otherwise charge you tax, so whether a particular store takes one is between you and that seller; ask before you buy.
Misusing a certificate
Items bought tax-free for resale but withdrawn from inventory and used by the owner or anyone else are subject to sales tax, and items taken out of resale inventory and donated to a nonprofit are taxed to the donor on their cost.
"A business can purchase merchandise for resale free from sales tax by giving their supplier the business’ sales tax permit information."
Sources: Business Tax Frequently Asked Questions; Mississippi Administrative Code, Title 35, Part IV, Sales and Use Tax.
Garage sales, yard sales and other occasional sales
Exempt. Isolated or occasional sales, other than motor vehicles, by persons not regularly engaged in business are not subject to sales tax: no sale except a motor vehicle is taxable unless made in the regular course of the seller's business. Sales through auctions, flea markets, antique malls or similar establishments are not isolated, casual or occasional sales.
"Isolated or occasional sales, except sales of motor vehicles, made by persons not regularly engaged in business are not subject to sales tax."
Sources: Mississippi Administrative Code, Title 35, Part IV, Sales and Use Tax.
Worked examples
A $50 sale from your own website
With a Mississippi permit (free), you collect the regular 7% rate: $3.50 on a $50 sale, reported on your return.
A Saturday at a flea market
The flea market's operator is treated as the seller and collects and reports the tax for vendors. Even if you hold your own permit, the Department says you report those sales to the operator, not under your own number.
Shipping boxes for your sales
Mississippi's rules count a sale of boxes, cartons and other packaging that passes to the customer with the goods as a wholesale sale to the retailer, so a registered seller doesn't pay tax on boxes that go out with orders.
Edge cases and details
- Selling through an auction, flea market or antique mall never counts as an isolated or occasional sale under the Department's rule, even for personal items (motor vehicles aside).
- A person who sells only at wholesale doesn't have to register, but must register to buy for resale exempt.
- Casual sales of motor vehicles have their own tax, collected by the county tax collector at registration.
- A permit can be revoked for not filing returns or paying the tax; continuing in business after revocation may result in criminal charges, the Department says.
What to do
- Marketplace-only: the Department's pages don't settle whether you need a permit; ask the Department or a tax professional, and keep marketplace sales records.
- Selling direct or at one-time events: register free on TAP before you start, with a permit for each location.
- Selling at flea markets or antique malls: report those sales to the operator, who collects the tax.
- Buying inventory for resale: give suppliers your sales tax permit information, and pay tax on anything you later use or donate.
Common questions
Is there a fee for a Mississippi sales tax permit?
No. The Department says there is no fee, and the permit doesn't expire while you stay in the same business at the same location.
Do I need to collect Mississippi sales tax if selling is a hobby?
The Department says yes if you sell retail to the public: anyone selling goods to a final consumer collects and remits Mississippi sales tax.
Who collects sales tax at a Mississippi flea market?
The operator or promoter of the flea market, antique mall or similar event is considered the seller and collects and reports the tax.
Is a garage sale taxable in Mississippi?
Isolated or occasional sales (other than motor vehicles) by people not regularly engaged in business aren't subject to sales tax under the Department's rule.
Related
- Seller's permits by state: marketplace-only sellers, resale certificates and garage sales on one table
- Minnesota: do you need a seller's permit?
- Missouri: do you need a seller's permit?
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax or legal advice
This page summarizes Mississippi's own published pages, rules and statutes as read on . It doesn't say whether you must register, what you should file or whether you owe tax: that turns on your own sales, where you sell and what you buy. Rules change. Check with a tax professional, or ask the Mississippi Department of Revenue directly.
Sources
Official pages this page is built from, with the day each was read.
- Mississippi Department of Revenue: Notice 72-20-04, Notice to Marketplace Facilitators (June 25, 2020), dated ; read . Marketplace Facilitator Act of 2020; $250,000 threshold; TAP.
- Mississippi Department of Revenue: Registration Information for Sales and Use Tax Applicants; read . In-state retailers must register; register on TAP.
- Mississippi Department of Revenue: Mississippi Sales and Use Taxes; read . 7% rate; permit before business; a permit per location; no expiry.
- Mississippi Department of Revenue: Business Tax Frequently Asked Questions; read . No fee, hobby sellers, one-time events, flea markets, wholesale sales, resale purchases, withdrawals and donations.
- Mississippi Secretary of State (Administrative Code): Mississippi Administrative Code, Title 35, Part IV, Sales and Use Tax; read . 35.IV.3.01 wholesale sales and packaging; 35.IV.3.02 isolated, casual or occasional sales.
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