Contact UsA Missouri auditor has scheduled a separately stated material on a invoice (signage) for which 8.25% sales tax was paid per the invoice on the material instead of Missouri tax (sales/vendors use). This per a fixed asset examination for an improvement to real property at a Missouri store. The Installation labor charge remains non-taxable per the MO regulation. The explanation is that the company charged Texas tax in error. There is no reciprocal agreement between the states.
The auditor is considering the material charge as a separate sell of TPP and the installation as non-taxable labor performed by their company or a subcontractor. Is this correct? Since Texas tax was charged, should we look to were titled passed on the material (Texas or other) as well as who arranged for the transportation of the TPP? Should the auditor examine weather the company holds a Missouri sales/vendors use tax permit considering that according to the MO regulation, contractors are consumers of all materials utilized in the improvement of real property?
