Mississippi sales and use tax statutes have been amended to provide that a sale to an unregistered Taxpayer does not qualify as a wholesale sale, even if the purchase is for resale.
A taxpayer that does not obtain a sales tax permit before engaging in business in Mississippi must pay the retail rate on all purchases of tangible personal property and services in Mississippi, even if the property or the service is purchased for resale.
Upon obtaining a sales tax permit, the previously unregistered taxpayer must file a return and report and pay sales taxes, applicable penalties and interest for all tax periods during which it engaged in business in the state without a sales tax permit.
When filing the return, or upon audit, a credit will be given for sales taxes paid on purchases that would have constituted a wholesale sale, if the taxpayer had a sales tax permit at the time of purchase. Penalties and interest will be calculated after the credit is taken.
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