Like all other states that have sales tax, Missouri also has compensating use tax. Use tax is complementary to sales tax and was enacted to eliminate an advantage to out-of-state vendors. In other words, consumers can’t pay less for a product simply because it is purchased from vendor in another state simply by avoiding the tax.
When purchasing goods from an out-of-state company, the purchaser may be required to pay use tax, Missouri cannot require out-of-state companies that do not have nexus or a "direct connection" with the state to collect and remit use tax. If an out-of-state seller does not collect use tax from the purchaser, the purchaser is responsible for remitting the use tax to Missouri. A purchaser is required to file a use tax return if the cumulative purchases subject to use tax exceed two thousand dollars ($2,000) in a calendar year. The $2,000 filing threshold is not an exemption or exclusion. Once you have accumulated $2,000 in taxable purchases in a calendar year, you must pay tax on all your purchases subject to consumer’s use tax. Businesses meeting the threshold must register and file returns on a quarterly basis.
The responsibility to remit use tax also applies to individuals (not just businesses). So, if you purchase goods that you would normally pay sales tax on (such as furniture, appliances, books, etc…) and there is no use tax on the invoices, then you will need to keep a record of those purchases. If cumulative purchases exceed the $2,000 threshold, a return is required to be filed annually (for individuals) and is due on April 15 of the following year.
