Section 35-4-03-01-300 - [Effective until 12/7/2023] Document Retention to Substantiate Wholesale Sales:
1. The quantity of property or services sold or the price at which they are sold is immaterial in determining whether or not a sale is at wholesale. Sales may be classed as wholesale, or exempt, only if evidenced by proper and adequate records and invoices to substantiate the exemption from the tax on each individual sale.2. The substantiation of wholesale or exempt sales must be by an invoice clearly indicating the date, the name and address of the vendor and vendee, the items sold and the price. Vendors making wholesale sales to customers who are issued a permit under Miss. Code Ann. Section 27-65-27 or have a letter ruling indicating an exemption must maintain a copy of the permit or letter ruling for these customers. Such proof of wholesale or exempt sales shall be filed in chronological order and preserved for a period of three (3) years from the date of sale. These records shall be subject to inspection by the Commissioner and his agents, at their discretion, for the verification of returns filed by either the wholesaler or his customers. This requirement shall apply equally to a retailer making wholesale or exempt sales. Please see Miss. Admin. Code 35.I.02 Taxpayer Records and Document Retention for general document retention requirements imposed on all taxpayers.3. Any failure to comply with all the above requirements shall subject the violator to the retail rate of tax on all such violations.4. Wholesale dealers and distributors of beer are further required to file detailed monthly reports with the Commissioner. These reports must show the number of retailers issued retail beer permits in legally wet counties.35 Miss. Code. R. § 4-03-01-300