Kansas Sales Tax on Services, Installation, etc Kansas: Sales Tax Handbook


What purchases are taxable in Kansas?

The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the Kansas sales tax.

Section 1: Taxability of Goods and Services

What transactions are generally subject to sales tax in Kansas?

"Tangible Personal Property" and "Labor Services" are both taxable in Kansas. If you are a retailer in Kansas, you will have to pay taxes on sales, rentals, or leases on personal property. Furthermore, labor is also taxable in Kansas, so if you install or build products, your labor is subject to taxation.

Are services subject to sales tax in Kansas?

Businesses that offer services in Kansas are exempt from taxes. Clarity on what constitutes a services can be determined if the service requires a product to be carried out. So, if your business is a product free service entity, you have not tax obligation; however, if any type of tangible good is altered, repaired, or installed, there is a tax requirement on the service.

You can find a table describing the taxability of common types of services later on this page.


Are shipping & handling subject to sales tax in Kansas?

If you do business in Kansas, you are obligated to pay taxes on the shipping and handling fees. The state is very clear about its taxation rule with regard to shipping. Tax is due on the entire price of the sale, including shipping and handling. If both taxable and exempt items are being shipped together, the percentage of the shipping charge that relates to the taxable items must be taxed.


Are drop shipments subject to sales tax in Kansas?

"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Kansas, drop shipments are generally subject to state sales taxes.


Section 2: Taxability of Various Items in Kansas

This table shows the taxability of various goods and services in Kansas. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.

Category Exemption Status
Amazon Purchases
Products on Amazon.com TAXABLE *
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food TAXABLE *
Leases and Rentals
Motor Vehicles TAXABLE *
Tangible Media Property TAXABLE
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel EXEMPT
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Medicines TAXABLE
Newspapers and Magazines
Newspapers TAXABLE
Periodicals TAXABLE
Occasional Sales
General Occasional Sales EXEMPT *
Motor Vehicles TAXABLE *
Optional Maintenance Contracts
General Optional Maintenance Contracts TAXABLE
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Pollution Control Equipment
General Pollution Control Equipment TAXABLE *
Janitorial Services EXEMPT *
Transportation Services EXEMPT
Software and Digital Products
Canned Software - Delivered on Tangible Media TAXABLE
Canned Software - Downloaded TAXABLE
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Customization of Canned Software TAXABLE *
Digital Products EXEMPT
General Trade-Ins EXEMPT
Vending Machine Sales
Merchandise TAXABLE

* See notes in category taxability page for details

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Source: http://www.salestaxhandbook.com/kansas/sales-tax-taxability