[Originally published December 22, 2022. Updated May 2025]
Are you a remote seller, marketplace facilitator, or business operating in multiple states, including Missouri? If so, understanding and complying with Missouri’s economic nexus laws is essential to avoid costly penalties and ensure smooth operations. As one of the latest states to adopt such laws, Missouri’s rules are now in full effect—and they impact thousands of businesses. In this guide, we’ll break down what economic nexus is, how Missouri’s legislation applies to your business, and what steps you need to take to stay compliant. We also include references to official Missouri Department of Revenue (DOR) resources to support your compliance journey.
Here’s an overview:
Article Index
Step 1: Understand What Economic Nexus Means for Your Business
- Definition of economic nexus and its origin from the Wayfair decision.
- Explanation of how states use thresholds to determine nexus.
- Missouri’s late adoption and its significance.
Step 2: Learn the Details of Missouri’s Economic Nexus Law
- Missouri’s $100,000 sales threshold for remote sellers and marketplace facilitators.
- Key distinctions between remote sellers, marketplace facilitators, and marketplace sellers.
- When and how nexus obligations begin.
Step 3: Register Promptly Once You Hit the Threshold
- Overview of Missouri’s registration process and required forms.
- How to register online through Missouri’s MyTax portal.
- Vendor’s use tax return filing requirements and tax code guidance.
Step 4: Collect the Right Tax, Avoid Double Taxation
- Clarification between sales tax and use tax in Missouri.
- Understanding how local use tax is distributed based on buyer location.
- Importance of verifying local rates and tax jurisdictions.
Step 5: Stay Ahead of Compliance Challenges
- National compliance trends and stats post-Wayfair.
- Common struggles for businesses navigating multiple state laws.
- The push for federal standardization of economic nexus rules.
Want to know more? Let’s talk. Reach out to us at info@milesconsultinggroup.com.
1. What Is Economic Nexus?
Economic nexus is a state’s ability to require a business to collect and remit sales tax based on economic activity—such as revenue or transaction volume—rather than physical presence. This concept emerged from the 2018 South Dakota v. Wayfair U.S. Supreme Court decision, which overturned the long-standing physical presence requirement. The ruling granted states authority to impose tax obligations on businesses with substantial economic activity within their borders.
Typically, states set a sales threshold—either based on dollar volume, number of transactions, or both—to determine nexus. Since Wayfair, nearly every state with a sales tax (45 states) has adopted some form of economic nexus law. Missouri was the final state to enact such legislation, with the law going into effect on January 1, 2023.
2. Missouri Economic Nexus Law: Key Details
Under Missouri’s economic nexus law, remote sellers and marketplace facilitators must collect and remit sales tax if they exceed a $100,000 cumulative gross receipts threshold from sales of tangible personal property delivered into Missouri during the previous or current calendar year.
It’s crucial to understand the distinctions:
- Remote sellers: Businesses with no physical presence in Missouri but who sell directly to customers in the state.
- Marketplace facilitators: Third-party platforms that facilitate sales on behalf of others (e.g., Amazon, eBay).
- Marketplace sellers: Third-party businesses making sales via a facilitator.
All sales—whether made directly or through a marketplace—count toward the $100,000 threshold. Once that threshold is crossed, the obligation to collect and remit Missouri sales tax begins immediately. Companies must carefully track their sales volumes to determine when they become liable.
3. Registration and Reporting Requirements
Once a business crosses the threshold, it must register with the Missouri Department of Revenue. Here’s how:
Registration Process:
- Complete Form 2643 (Missouri Tax Registration Application) and, if applicable, Form 2643A (Additional Business Locations).
- Register online through Missouri’s MyTax portal: https://mytax.mo.gov.
Filing Requirements:
- Businesses file a vendor’s use tax return (not a sales tax return).
- If acting as a marketplace facilitator, you must report your own sales and third-party sales separately.
- Use item tax codes to designate transaction types:
- Code “0010” is used for sales made as a marketplace facilitator.
Timely Payment Discount:
Missouri offers a 2% discount on timely tax payments. Businesses that file and pay on time can retain this small percentage of the taxes due—an incentive to stay compliant.
4. Sales Tax Collection and Use Tax Clarifications
In Missouri, businesses must take care to avoid double taxation. A purchaser should not be charged both sales tax and use tax for the same transaction.
Additionally, when collecting local use tax, the funds are distributed based on the location of the buyer, not the seller. This distinction is important, especially for remote sellers. For example:
- A sale shipped to a customer in Kansas City may be subject to different local use tax rates than one shipped to a customer in Springfield.
It’s important to confirm local rate application and collection timing to avoid over- or under-collecting.
5. Economic Nexus Compliance Challenges and Trends
Economic nexus compliance continues to pose challenges for businesses—especially those selling into multiple states. According to a 2022 Avalara study:
- 83% of businesses say the Wayfair ruling has impacted how they do business—the highest figure in the survey’s history.
- Only 46% of respondents reported full compliance with economic nexus laws—an all-time low.
Even with four or more years of legislation in effect in many states, companies still grapple with:
- Navigating differing state thresholds
- Understanding marketplace facilitator laws
- Filing the correct returns across jurisdictions
This has led to renewed conversations around the possibility of federal standardization. In late 2022, the Government Accountability Office (GAO) recommended that Congress step in to create a uniform framework. While no legislative action has occurred yet, the demand for clarity and consistency remains strong.
Still Have Economic Nexus Questions?
Complying with Missouri’s economic nexus law—and similar laws in other states—can be complex. But with the right tools and guidance, your business can stay compliant and avoid costly mistakes. If you have questions about your obligations or need help with sales tax compliance in multiple jurisdictions, contact Miles Consulting Group today. We’re here to help simplify the process and keep your business moving forward.
