Free guide for contractors
Do contractors charge sales tax in Missouri?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
MO Missouri
Usually no tax on the invoiceNo, for construction work. Missouri contractors are the final consumers of their materials, unless title passes to the customer before installation.
Missouri's regulation makes a contractor the final user and consumer of the materials and supplies used in a construction contract. A contractor is anyone who agrees to improve, repair, replace, erect or alter real property.
If title to an item passes to the customer after it is attached, the contractor pays tax when buying it and does not collect tax. If title passes before attachment, the contractor collects tax on the sale. Title passes after installation unless the parties agree otherwise.
A contractor that also sells products through a showroom charges tax on the total price of those direct sales.
It turns on: when title to the materials passes to the customer; whether the item is sold directly rather than installed under a construction contract.
Watch out for
- For projects of certain exempt entities, a project exemption certificate lets the contractor buy the materials tax-free (12 CSR 10-112.010(3)(D); RSMo 144.062).
“a contractor is the final user and consumer of the materials and supplies”12 CSR 10-112.010(1)