Mississippi: Sales Tax Handbook
How to file your sales taxes in Mississippi
Once your business has a Mississippi sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Mississippi government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Mississippi
If the seller has an in-state location in the state of Mississippi, they are legally required to collect sales tax at the tax rate of the area where the seller's business is located, as Mississippi is an origin based sales tax state.
If the seller's location is out of state, then the collection of sales tax gets a bit more difficult. In this case, the seller who has sales tax nexus within the state, is required to collect sales tax at the sales tax rate of the buyer's location.
Sales Tax Collection Discounts In Mississippi
Mississippi allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Mississippi sales tax regulations
The collection discount is that 2% of the tax that is due can be claimed as a credit for each business location, although there is a maximum discount of fifty dollars for each month and six hundred dollars for each year.
Your Mississippi Sales Tax Filing Requirements
To file sales tax in Mississippi, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
In the state of Mississippi, all taxpayers are required to both file and pay their taxes online. Everyone must file at the Mississippi Department of Revenue, and remit the payment utilizing the same online system.
Tax payers in Mississippi should be aware of late penalties the state applies. The penalty for late filing is 10% of the tax due. The late payment penalty is 10% for the very first offense, 15% of the tax due for the second offense, 25% for the third offense, and 50% of any additional offenses.
The state of Mississippi requires that a seller who owns a sales tax permit files sales tax return on the required day, so long as the tax return would have been "zeroed-out", and there is nothing to report.
Your Mississippi Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period for monthly and quarterly filers, 4-week accounting period filers file on the 20th day following end of reporting period. For a list of this year's actual due dates, see our calendar of Mississippi sales tax filing due dates.
Where To File Your Mississippi Sales Tax Return:
Filing Your Mississippi Sales Tax Returns Online
Mississippi supports electronic filing of sales tax returns, which is often much faster than filing via mail.The Mississippi Department of Revenue uses an online filing and payment system called Taxpayer Access Point (TAP).
Mississippi allows businesses to make sales tax payments electronically via the internet.The Mississippi Department of Revenue uses an online system called Taxpayer Access Point (TAP) to file and pay. This electronic payment is required for taxpayers who owe a minimum of twenty thousand dollars, in connection with a return and for taxpayers who have already received their alert from the Tax Commissioner.
You can process your required sales tax filings and payments online using the official Mississippi Taxpayer Access Point (TAP) website, which can be found here . You should have received credentials to access your Mississippi Taxpayer Access Point (TAP) account when you applied for your Mississippi sales tax license.
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