Mississippi: Sales Tax Handbook
What constitutes sales tax nexus in Mississippi?
One of the more complicated aspects of Mississippi sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Mississippi, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Mississippi, the vendor must register for a Mississippi sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in Mississippi.
Sales Tax Nexus in Mississippi
According to Mississippi law, retailers who have tax nexus can be defined as those who are doing business within the state, meaning any of the following conditions apply to them:
One who owns any office or place of business, or has any agent, employee, or representative who services Mississippian customers, or who solicits or accepts any orders for products within the state of Mississippi's boundaries.
For additional details on sales tax nexus law in Mississippi, see the nexus information page from the Department of Revenue at https://www.dor.ms.gov/taxareas/sales/salestaxfaqs.html#nexus
Taxation of Internet-Based Sales in Mississippi
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Depending on the situation, Mississippi may or may not charge sales tax on Internet-based transactions. It is possible for tax nexus to exist in Mississippi if the individual deliberately or methodically exploits the state's consumer market by using computer-assisted shopping or other electronic media and if several additional requirements are met (they can be found in(Sec. 27-67-4(2)(e))). However, in the case Quill Corp. v. North Dakota, the U.S. Supreme Court declared that due to the Commerce Clause, a seller must have a physical presence in the state for the state to legally require the seller to collect sales tax.
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Mississippi, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in Mississippi?
The folks at the sales tax compliance company Avalara are an approved Mississippi sales tax partner, and you can use their free Mississippi nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Mississippi sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
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