Missouri Clarifies Sales Tax Responsibility for Contractors and Homeowners in Lump Sum Contracts

• Contractors in Missouri are considered the final users and consumers of materials used in real property improvements.
• Sales tax is due when contractors purchase materials; they should not charge sales tax on the lump sum contract price to homeowners.
• Contractors can include the cost of sales tax paid on materials in the contract price and pass it on to the homeowner.
• Service providers must ensure they pay the correct sales tax and properly recover these costs from clients.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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