The Missouri Department of Revenue (DOR) has issued a letter ruling regarding sales made by a retailer that has retail locations in Missouri and makes online sales as well. The taxpayer is registered with the DOR and is required to collect and remit sales tax on its retail sales in Missouri. The taxpayer processes and ships its online orders from outside of Missouri. The letter ruling specifies that the online sales are not subject to Missouri state and local sales tax, but rather are subject to Missouri state and local vendor’s use tax. Based on the retail locations that it has in-state, the taxpayer qualifies as a vendor and has nexus in Missouri. As a result, online orders shipped to Missouri customers from out-of-state are subject to Missouri state and local use tax. The taxpayer is required to collect and remit Missouri state and local use tax on the online sales and file vendor’s use tax returns in Missouri. The taxpayer must collect and remit Missouri state and local use tax based upon each customer’s location in Missouri. On the vendor’s use tax return, the taxpayer must report each location in Missouri where it ships online sales and remit state and local use tax for each location that is reported on the return. (Letter Ruling No. LR 8116, Missouri Department of Revenue, September 25, 2020)