Mississippi Mississippi

Mississippi

Standard rate: 

7 % – 8%

Reduced rate:

Sales tax-free products and services:

Prescription drugs; Petrol; Food stamps; Extensive Sales (but for beer and alcohol have a sales tax)​.

Who is obliged to register sales tax:

When you sell in Mississippi and qualify as a dealer under the definition and meet the threshold, you need to be registered to collect and pay sales tax in Mississippi.

Threshold:

Starting July 1, 2018, remote sellers are only required to register and collect sales tax in Mississippi if, in the previous or current calendar year, they have more than $250,000 sales in the state.

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Marketplace:

If the marketplace seller is registered in-state for their sales, and the marketplace facilitator collects and pays the sales tax itself, the marketplace seller is exempt from sales tax.

But marketplace sellers must receive the statement from a facilitator.

Provide a copy of your Mississippi registration to collect sales and use tax to the marketplace provider. Enter into an agreement with the marketplace provider that you will collect and pay sales taxes on the sales you make through the marketplace.

Registration procedure:

You can be registered online on the Mississippi Department of Revenue website.

Sales tax payment and filing date: 

Depending on your tax liability, determine your filing frequency – either annual, monthly, or quarterly:

Annual – $0 to $50.00
Quarterly – $50.01 to $300.00
Monthly – $300.01 and up

Returns are always due on the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, due the next business day.

Penalty and interest:

  • Late Filing – 10% of tax due
  • Late Payment – 10% of tax due for the first-time offense; 15% of tax due for the second-time offense; 25% of tax due for third; 50% of tax due further

Discount:

As long as the sales tax is paid on time, a discount of 2% of tax due, not to exceed $50 is allowed.