Taxes / State tax rules / Missouri
Selling on eBay, Poshmark or Etsy from Missouri: sales tax and 1099-K rules
Since January 1, 2023, RSMo 144.752 has required marketplace facilitators doing business in Missouri (which includes over $100,000 of taxable sales delivered into the state) to collect Missouri use tax on the sales they facilitate, and the Department of Revenue's FAQ says a seller selling only through a marketplace facilitator needn't register for, collect or remit vendor's use tax. For Form 1099-K, no Missouri threshold appears on the Department of Revenue pages checked for this page; the federal test is over $20,000 in more than 200 transactions.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Missouri in short
- General sales tax:
- Yes
- Marketplace facilitator law:
- Yes: RSMo 144.752 (with the $100,000 test in RSMo 144.605), since Jan 1, 2023
- When a marketplace must collect:
- gross receipts from taxable sales of tangible personal property delivered into Missouri of more than $100,000 in the previous or current calendar year, checked after each calendar quarter (RSMo 144.605); the department's FAQ measures it over the preceding 12 months
- Form 1099-K:
- No state rule stated on the pages checked
Who collects the tax on a marketplace sale
Beginning January 1, 2023, a marketplace facilitator that engages in business activities in Missouri registers and collects and remits use tax on sales made through its marketplace by or for marketplace sellers that are delivered into Missouri, whether or not the seller has a retail sales license. It reports these separately from its own sales and must separately state on the buyer's invoice the use tax collected for a marketplace seller.
If you sell only through marketplaces
The department's FAQ says a marketplace seller doesn't have to register, collect or remit vendor's use tax if it sells only through a marketplace facilitator. A seller that also sells independently, and whose total gross receipts including marketplace sales exceed $100,000, registers and collects on the sales made outside the marketplace.
Registration, resale certificates and what changes when you also sell direct have their own page: Missouri: seller's permit and resale certificate rules.
The law: RSMo 144.752 (with the $100,000 test in RSMo 144.605), effective .
"You do not have to register, collect or remit vendor’s use tax if you are selling through a marketplace facilitator only."
"A marketplace facilitator shall separately state on an invoice provided to a purchaser the use tax collected and remitted on behalf of a marketplace seller."
Sources: Remote Seller and Marketplace Facilitator FAQs; RSMo 144.752, Marketplace facilitators, registration required; RSMo 144.605, Definitions (vendor's use tax).
Missouri's sales tax
Missouri taxes remote and marketplace sales through its vendor's use tax. The department says that where a political subdivision hasn't passed a local use tax, out-of-state sellers that must file in Missouri collect only the state use tax portion of 4.225%; elsewhere local use tax is added.
"If a political subdivision has not passed a local use tax, out-of-state sellers that are required to file in the state of Missouri would only collect the state use tax portion of 4.225%."
Form 1099-K: Missouri and the federal test
The Department of Revenue pages checked for this page (its remote seller and marketplace facilitator FAQ) don't address Form 1099-K, so no Missouri 1099-K rule is stated here.
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Worked examples
A $40 sale to a buyer where no local use tax applies
The marketplace collects only the 4.225% state use tax: $40 x 4.225% = $1.69. Where the buyer's political subdivision has a local use tax, that is added. Either way it appears as a separate line on the buyer's invoice under RSMo 144.752.5.
Marketplace sales plus $30,000 on your own website
A seller with $90,000 on marketplaces and $30,000 on its own site has $120,000 of total gross receipts including marketplace sales, over $100,000, so the department's FAQ says it registers and collects vendor's use tax on the $30,000 of sales made separately from the marketplace. At $60,000 total, it wouldn't need to.
Edge cases and details
- The department measures the $100,000 at the end of each calendar quarter over the preceding 12 months; a seller over it must start collecting no later than three months after the close of that quarter, per the FAQ's examples (for example, checked July 1, 2024 and collecting by October 1, 2024).
- A facilitator already filing Missouri vendor's use tax for its own sales reports marketplace sales on a separate line of its return after January 1, 2023.
- Nothing in RSMo 144.752 relieves a purchaser of use tax on a sale where neither the facilitator nor the seller collected (RSMo 144.752.6).
- The statute's definition excludes internet advertisers or listing services that don't collect payment, travel agency services, and third-party financial institutions that only process payments.
- The department's FAQ answers the registration question for vendor's use tax on sales delivered into Missouri; the pages checked here don't separately address sales tax registration for a seller located in Missouri who also sells in person or from a shop there.
What to do
- Keep each marketplace's sales report showing the Missouri use tax it collected on your sales.
- If you also sell directly to Missouri buyers, add your marketplace and direct sales together against the $100,000 test the department's FAQ describes.
- Check with a tax professional, or with the department, about your own registration and the federal 1099-K.
Common questions
Do I need to register for Missouri vendor's use tax to sell on eBay, Poshmark or Etsy?
Not if you sell only through a marketplace facilitator: the Missouri Department of Revenue says you don't have to register, collect or remit vendor's use tax in that case. Independent sales that bring your total, including marketplace sales, over $100,000 change that.
When did Missouri start making marketplaces collect?
January 1, 2023. RSMo 144.752 says marketplace facilitators that engage in business activities in Missouri register and collect use tax on facilitated sales beginning that date.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Missouri: seller's permit and resale certificate rules
- Minnesota: sales tax and 1099-K rules
- Montana: sales tax and 1099-K rules
- 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 advice
This page summarizes Missouri's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Missouri Department of Revenue: Remote Seller and Marketplace Facilitator FAQs; read . $100,000 threshold and quarterly check; marketplace-only sellers don't register; mixed sellers; 4.225% state use tax; separate reporting line.
- Missouri Revisor of Statutes: RSMo 144.752, Marketplace facilitators, registration required; read . Definitions; January 1, 2023 start; separate reporting; invoice statement; purchaser's use tax.
- Missouri Revisor of Statutes: RSMo 144.605, Definitions (vendor's use tax); read . Engaging in business activities: more than $100,000 of taxable sales delivered into Missouri, checked quarterly.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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