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

Missouri:

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.

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.

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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.

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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.

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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.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT *
Clothing
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 EXEMPT *
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts TAXABLE
Pollution Control Equipment
General Pollution Control Equipment EXEMPT *
Services
Janitorial Services 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 *
Digital Products EXEMPT
Trade-Ins
General Trade-Ins EXEMPT *
Vending Machine Sales
Food TAXABLE *
Merchandise TAXABLE *

* See notes in category taxability page for details



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** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/missouri/sales-tax-taxability