Occasional Vendor

Encourage newer employees to accept occasional vendor calls and presentations, and ask them to provide summaries of what they see. This is a helpful development exercise for new employees, and it. Vendors Contracting with the State of Missouri Must Collect and Remit Sales/Use Tax. Any vendor and its affiliates selling tangible personal property to Missouri customers should collect and pay sales or use tax in order to be eligible to receive Missouri state contracts, regardless of whether that vendor or affiliate has nexus with Missouri.

If you have a garage sale or sell personal items through the internet or an advertisement, you may need to obtain a Texas Sales and Use Tax Permit and collect sales tax.

Texas sales tax is normally due when you sell tangible personal property. Examples include clothing, shoes, CDs, DVDs, books, furniture, bicycles, toys and other personal items typically sold at garage sales.

Depending on how many sales you make a year or the dollar amount of those sales, the occasional sales exemption could apply.

Occasional Sales by Individuals

If you occasionally sell personal items, you may qualify for the 'occasional sales' exemption. If you qualify, you do not need a sales tax permit, and you do not collect tax on those sales.

You can qualify for an occasional sales exemption if you meet either of these requirements:

• You only sell one or two taxable items during any 12-month period (not just January-December) – the price of the items does not matter.
  • Example – you sell a piano for $400 and a bicycle for $200 at a garage sale in a 12-month period. You later sell your used lawn mower for $100 before the end of that 12-month period. Selling the lawn mower is a third sale, so you must get a sales tax permit and collect and pay sales tax on the lawn mower.
• You sell in a calendar year (January-December) items originally bought for you or your family members for personal use, and you don’t make more than $3,000 on those sales during the calendar year. You can sell as many items as you want to as long as your total sales are $3,000 or less during a calendar year.
  • Example – you sell housewares at a garage sale in May and make $1,000. In August, you sell your used bicycle to a neighbor for $200. In December, you sell your TV to a friend for $500. That makes more than two sales in a calendar year, but the total sales amount is $3,000 or less, and all the items were originally bought for your use or your family’s personal use, so the exemption still applies.
  • If, however, you sell more taxable items after you reach the $3,000 limit, and you made more than two sales, you are considered engaged in business, and the exemption does not apply. You must get a sales tax permit and collect tax on all later sales of taxable items, beginning with the first sale after you reached the $3,000 limit.

You do not qualify for the occasional sales exemption if any of these conditions apply:

• You have, or are required to have, a Texas Sales and Use Tax Permit (or a similar permit from another state).
• You are engaged in business selling taxable items (including artists or craftsmen who make items for sale).
• You buy, barter or trade taxable items to resell.

Group Sales

Sales made by groups, such as student or church groups that collect items to sell at a garage sale, neighborhood flea market or miscellaneous secondhand articles typically sold to raise money for a charity or a special event, do not qualify for this type of occasional sales exemption; it applies only to individuals.

In these situations, sellers must have a sales tax permit and collect sales tax, unless another exemption applies, such as sales by an exempt organization.

Community Events

If you are in the business of selling, leasing or renting taxable items, you do not qualify for the occasional sales exemption. A person who buys or otherwise gets items from others to sell (including barters, trades and donated items) or a person who regularly sells taxable items (including artists or craftsmen who make items to sell) is engaged in business.

If you are required to pay a fee or commission to participate in events such as flea markets, arts and crafts shows, or other similar “community-wide” type events coordinated or produced by a third party, the occasional sales exemption does not apply. You can review Publication 96-211, Fairs, Festivals, Markets and Shows for more information on community-wide events.

You are required to have a Texas sales tax permit and collect tax on all sales of taxable items, even if you sell your personal items. In other words, if you are engaged in the business of making taxable sales, you cannot claim the “occasional sales” exemption.

Occasional Sales Exemption

Use this chart to see if you qualify for the occasional sales exemption:

Occasional Vendor Definition

Additional Resources

94-437
(09/2020)

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Ventas de Garaje y Ventas Ocasionales

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Occasional Vendors

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Vendors Contracting with the State of Missouri Must Collect and Remit Sales/Use Tax

Any vendor and its affiliates selling tangible personal property to Missouri customers should collect and pay sales or use tax in order to be eligible to receive Missouri state contracts, regardless of whether that vendor or affiliate has nexus with Missouri.

Section 34.040.6 states, “The commissioner of administration and other agencies to which the state purchasing law applies shall not contract for goods or services with a vendor if the vendor or an affiliate of the vendor makes sales at retail of tangible personal property or for the purpose of storage, use, or consumption in this state but fails to collect and properly pay the tax as provided in Chapter 144, RSMo. For purposes of this section, “affiliate of the vendor” shall mean any person or entity that is controlled by or is under common control with the vendor, whether through stock ownership or otherwise.”

Vendors Must Properly Register With The Department of Revenue

The Office of Administration (OA), Division of Purchasing and Materials Management will maintain a list of vendors in compliance with Section 34.040.6 RSMo. If you or your affiliate(s) sell tangible personal property in Missouri and are properly licensed to collect sales and/or use tax, your bid will comply with Section 34.040.6 RSMo without further action from you. However, if you or your affiliates sell tangible personal property in Missouri and are not properly licensed to collect sales and/or use tax, your bid will not comply with Section 34.040.6 RSMo. and you will not be awarded any contract with Missouri state government. You will have an opportunity to become a responsive bidder by following the below steps:

Step One - If you or your affiliate(s) sell tangible property in Missouri, register with the Department of Revenue to remit sales and/or use tax by completing a Missouri Tax Registration Application (Form 2643), online or by mail.

If you do not sell taxable tangible personal property at retail or provide taxable services in Missouri, you do not need to register for sales/use tax but you will need to follow step two below.

Occasional Vendor Meaning

Step Two – If OA Vendor purchasing records indicate you are not currently in compliance with Section 34.040.6 RSMo, you can present a vendor no tax due certificate to purchasing authorities to verify that you have become compliant with Missouri sales and use tax law. Obtain a vendor no tax due certificate from the Missouri Department of Revenue by following the procedures outlined below.

If you do not sell taxable tangible personal property at retail or provide taxable services in Missouri, the department will provide a vendor no tax due certificate that you can present to Missouri purchasing authorities. The letter will verify that you are not required to register for sales and/or use tax because you do not make taxable sales in Missouri.

Once you are properly registered and provide a Vendor No Tax Due, OA's records will be updated to reflect you are in compliance with this law. As long as you and your affiliates are properly licensed and are filing and remitting sales and/or use tax you will remain on the in-compliance list. There may be a time lag between the time you present the Vendor No Tax Due and the time vendor files are updated, so you should maintain a copy of the certificate and present it with any bid documents for at least 45 days from the certificate's issuance date.

Please note all affiliate(s) of the vendor must be in compliance in order for the vendor to have the opportunity to bid on state purchasing contracts.

Obtaining a Vendor No Tax Due

The Missouri Department of Revenue will issue a Vendor No Tax Due when a business is properly registered and has all of its sales/use tax paid in full. If taxes are due, depending on the payment history of the business, a cashier's check or money order may be required for payment before a certificate of no tax due can be issued.

A Vendor No Tax Due can be obtained by contacting the Missouri Department of Revenue, Taxation Division, P.O. Box 3666, Jefferson City, MO 65105-3666. You may also call (573) 751-9268, fax (573) 522-1160, or email taxclearance@dor.mo.gov.

Sales and Use Tax

Sales tax is imposed on retail sales of tangible personal property and certain services. All sales of tangible personal property and taxable services are generally presumed taxable unless specifically exempted by law. Persons making retail sales collect the sales tax from the purchaser and remit the tax to the Department of Revenue. The state sales tax rate is 4.225%. Cities, counties and certain districts may also impose local sales taxes as well, so the amount of tax sellers collect from the purchaser depends on the combined state and local rate at the location of the seller. The state and local sales taxes are remitted together to the Department of Revenue. Once the seller remits sales tax to the department, the department then distributes the local sales taxes remitted by the sellers to the cities, counties and districts.

Use tax is imposed on the use, storage or consumption of tangible personal property shipped into Missouri from out of state. The state use tax rate is also imposed at a rate of 4.225%. In addition, cities and counties may impose local use tax. The amount of use tax paid on the transaction will depend on the combined local use tax rate in effect at the Missouri location to which the tangible personal property is shipped. Either the out-of-state seller will collect and remit the use tax directly to Missouri or the purchaser is responsible for remitting the tax to the department if the out-of-state seller does not collect use tax on the transaction. Local use taxes are distributed in the same manner as sales tax. Missouri cannot require out of state companies that do not have nexus or “direct connection” with the state to collect and remit use tax.

Any vendor and its affiliates selling tangible personal property to Missouri customers should collect and pay sales or use tax in order to be eligible to receive Missouri state contracts, regardless of whether that vendor or affiliate has nexus with Missouri.

Section 34.040.6 states, 'The commissioner of administration and other agencies to which the state purchasing law applies shall not contract for goods or services with a vendor if the vendor or an affiliate of the vendor makes sales at retail of tangible personal property or for the purpose of storage, use, or consumption in this state but fails to collect and properly pay the tax as provided in Chapter 144, RSMo. For purposes of this section, 'affiliate of the vendor' shall mean any person or entity that is controlled by or is under common control with the vendor, whether through stock ownership or otherwise.'

Helpful Links:

Occasional Vendor

• Learn more about sales/use tax.