Missouri: Sales Tax Handbook
What purchases are taxable in Missouri?
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 Missouri sales tax.
Contents1.) Taxability of Goods and Services
- General Missouri taxability guidelines
- Are services subject to sales tax?
- Is shipping & handling subject to sales tax?
- Are drop shipped items taxable?
Section 1: Taxability of Goods and Services
What transactions are generally subject to sales tax in Missouri?
In the state of Missouri, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Several examples of exceptions to this tax are some types of medical devices, certain prescription medication, and also machinery and chemicals used in the agricultural and manufacturing business.
This means that an individual in the state of Missouri who sells computer equipment and video games would be required to charge sales tax, but an individual who owns a store which sells manufacturing equipment is required to charge sales tax.
Are services subject to sales tax in Missouri?
In the state of Missouri, services are not generally considered to be taxable. While most services are exempt from tax, there are a few exceptions. For example, a service who's work includes creating, selling, or manufacturing a product, it is very likely considered to be taxable, and thus you would most likely have to pay sales tax on the service.
You can find a table describing the taxability of common types of services later on this page.Top
Are shipping & handling subject to sales tax in Missouri?
In the state of Missouri, the laws regarding tax on shipping and handling costs are relatively simple. Essentially, if the shipping charges are listed separately stated on an invoice, it is not considered to be taxable, and if the charges are not stated separately on the invoice, taxes should be paid on the shipping charge. The shipping cost tax may also be excluded the charges are optional.Top
Are drop shipments subject to sales tax in Missouri?
"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 Missouri, drop shipments are generally subject to state sales taxes.
Section 2: Taxability of Various Items in Missouri
This table shows the taxability of various goods and services in Missouri. 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.
|Products on Amazon.com||EXEMPT *|
|Food and Meals|
|Grocery Food||TAXABLE *|
|Leases and Rentals|
|Motor Vehicles||TAXABLE *|
|Tangible Media Property||TAXABLE|
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT|
|Medical Goods and Services|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT *|
|Optional Maintenance Contracts|
|General Optional Maintenance Contracts||EXEMPT *|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||TAXABLE|
|Pollution Control Equipment|
|General Pollution Control Equipment||EXEMPT *|
|Transportation Services||TAXABLE *|
|Software and Digital Products|
|Canned Software - Delivered on Tangible Media||TAXABLE|
|Canned Software - Downloaded||EXEMPT|
|Custom Software - Delivered on Tangible Media||EXEMPT *|
|Custom Software - Downloaded||EXEMPT *|
|Customization of Canned Software||TAXABLE *|
|General Trade-Ins||EXEMPT *|
|Vending Machine Sales|
* See notes in category taxability page for details
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