PURPOSE: This rule indicates the recordkeeping and other requirements necessary for a vendor in order to substantiate deductions and interprets and applies sections 144.620 and 144.640, RSMo.

1. (1) All vendors making sales of tangible personal property or services subject to the Missouri use tax are liable for determining whether the purchase is for storage, use or consumption or for resale. All vendors are required to keep adequate records of sales and transactions, where the use tax is applicable to support reports filed with the director of revenue. The director will not recognize any deductions on a vendor’s tax return unless the vendor has adequate supporting evidence in his/her records to verify the deductions. Vendors must also keep in their records signed resale exemption certificates supporting deductions taken as sales for resale. Those certificates are to be kept in the taxpayer’s files and must be made available for inspection by the director of revenue or his/her agents, during all business hours of the day. Those resale exemption certificates shall be only prima facie evidence that the property or services described were sold for the purpose of resale and the director has the right to examine all facts relative to the purchase and sale before the resale exemption certificates will be honored.
2. (2) The resale exemption certificate should state that all of the purchases made by the purchaser for a certain definite period or for a certain transaction will be purchased from the seller for resale and that the purchaser assumes liability for the tax from the ultimate user or consumer. A complete detailed record of such purchases must be kept by the taxpayer. Where the goods purchased are for use or consumption, and not for resale by the purchaser, the vendor shall also be held responsible for the use tax on the goods.

AUTHORITY: section 144.705, RSMo (1994).* U.T. regulation 640-1 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976.

*Original authority 1959. Op. Atty. Gen. No. 149, Murray (10-6- 76). The director of revenue does not have the right or duty to grant a use tax exemption in the case in which an individual transfers motor vehicles to a corporation in which s/he owns 100% of the stock and the corporation assumes the outstanding liability on said motor vehicle.