Missouri Code of State Regulations
Title 12 - DEPARTMENT OF REVENUE
Division 10 - Director of Revenue
Chapter 101 - Sales/Use Tax-Nature of Tax
Section 12 CSR 10-101.500 - Burden of Proof

(A) Burden of proof-Burden of persuading the finder of fact that the existence of a fact is more probable than the nonexistence.

(B) Good faith-Honesty of intention and freedom from knowledge of circumstances which ought to put the holder upon inquiry.

(A) The director always has the burden of proof regarding-

(B) The taxpayer always has the burden of proof on any issue with respect to the applicability of any tax credit.

(C) The taxpayer has the burden of proof on all other issues unless-

(D) A taxpayer can generally meet its burden of proof that a sale of tangible personal property, services, substances, or things was not a taxable sale at retail by obtaining and maintaining an exemption certificate signed by the purchaser or its agent. An exemption certificate that is not obtained in good faith, however, will not satisfy the burden of proof. Even when a taxpayer does not have a valid exemption certificate, it may prove that the transaction is exempt from sales and use tax by proof admissible under the applicable rules of evidence.

(A) The director alleges that a taxpayer fraudulently fabricated exemption certificates in order to evade sales tax. The director has the burden of proof.

(B) A person is a donee, heir, legatee, devisee, or distributee of a taxpayer that owes sales tax. The director issues assessments to this person as a transferee. The director has the burden of proof to show the person is a transferee of the delinquent taxpayer.

(C) An audited taxpayer is assessed unpaid sales tax on unreported sales of meals it provided to customers. The taxpayer has the burden of proof to supply the applicable documentation that it correctly collected and remitted sales tax on the meals provided to its customers. If the taxpayer had adequate records and provided those to the department during the audit, and later produces evidence establishing that the unreported sales of meals were to non-profit customers that presented exemption certificates to the taxpayer at the time of sale, the burden of proof then shifts to the director provided the exemption certificates were received in good faith.

(D) An out-of-state vendor registered to collect use tax is assessed use tax on the sale of a computer to a Missouri customer. The vendor has the burden of proof to supply the applicable documentation that it correctly collected and remitted use tax on the sales of tangible personal property. If the vendor had adequate records and provided those to the department, the burden of proof then shifts to the director.

(E) A taxpayer is assessed use tax on its purchase of a wood lathe that it purchased out-of-state. The taxpayer has the burden of proof to supply the applicable documentation that it purchased tangible personal property that was exempt from sales or use tax. If the taxpayer has adequate records which it made available to the department and produces evidence that the lathe is used to manufacture furniture later sold for ultimate use or consumption, the burden of proof then shifts to the director.

(F) A taxpayer sells tangible personal property and claims that it was a sale for resale. The taxpayer presents a valid resale exemption certificate that was accepted in good faith. The taxpayer has met its burden of proof.

(G) A jeweler sells an expensive diamond ring to his neighbor, known to the taxpayer not to be in the jewelry business. The neighbor presents an exemption certificate claiming that the ring was purchased for resale and therefore exempt from tax. The jeweler may not accept the exemption certificate without further inquiry.

(H) A jeweler sells an expensive diamond ring to a purchaser unknown to the jeweler but does not receive an exemption certificate. If the jeweler fails to collect and remit tax, upon assessment by the director the jeweler has the burden of proof and may prove that the sale was exempt through testimony and documents admissible under the rules of evidence.

(I) A jeweler sells an expensive diamond ring to a purchaser unknown to the jeweler but does not receive an exemption certificate. The jeweler presents to the department an invoice for the diamond ring showing it was sold to a wholesale jeweler. The burden of proof shifts to the director.