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When it comes to sales tax, the general rule of thumb has always been products are taxable, while services are non-taxable. Under that scenario, if your business sells coffee mugs, you should charge sales tax for those products.
In general, clothing, groceries, medicines and medical devices and industrial equipment are sales tax exempt in many states (but don't assume they'll be exempt in all states. Every state is different when it comes to sales tax!)
Tax-exempt goods Some goods are exempt from sales tax under Mississippi law. Examples include most non-prepared food items purchased with food stamps, prescription drugs, and some medical supplies.
In the state of Mississippi, services are not generally considered to be taxable.
Goods that are subject to sales tax in Mississippi include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine and gasoline are both tax-exempt.
Are services taxable? Certain types of labor performed in connection with the sale and installation of tangible personal property are taxable....TaxableRepairs of tangible personal property.Rental or lease of personal property like motor vehicles or equipment.Charges for admission to an amusement, sport, or recreation.More items...
Material Purchase Certificate (MPC)
Professional services are not subject to sales tax in the state of California.