Missouri Sales Tax on Software and Digital Products Missouri: Sales Tax Handbook

Missouri:

Are Software and Digital Products subject to sales tax?

While Missouri's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Missouri, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Missouri.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Missouri.

Canned Software - Downloaded
EXEMPT
Sales of canned software - downloaded are exempt from the sales tax in Missouri.

Custom Software - Delivered on Tangible Media
EXEMPT
In the state of Missouri, the tax is not applicable to the amount which is charged to the customer for any customized software. However, the seller of this customized software will certainly be subject to a tax on the purchase of any tangible personal property or taxable services which will be used to provide a nontaxable service.

Custom Software - Downloaded
EXEMPT
In the state of Missouri, the tax is not applicable to the amount which was charged to the customer for their customized software. It should be noted that the seller of the customized software is considered to be subject to the tax on the purchase of any tangible personal property or taxable services which is used to provide the nontaxable service.

Customization of Canned Software
TAXABLE
In the state of Missouri, all programming changes which are made to canned software in an attempt to adapt it to a customer's equipment or business processes are in the nature of fabrication or production labor that are a part of the sale and are considered to be taxable.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in Missouri.



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Source: http://www.salestaxhandbook.com/missouri/sales-tax-taxability/software-and-digital-products