Updated July 11, 2017
Important to note: Starting August 28, 2017 separately stated shipping charges will no longer be taxable in Missouri. I’ll update this blog post at the time, but until then, you can read about the change to shipping taxability in Missouri here.
Sales tax is one of the most tiresome aspects of being a small business owner. When to charge, how much to charge, where to remit it – these questions only grow more confusing as each state creates their own regulations to follow. One question in particular, is whether to charge sales tax on shipping and handling. Today, we will see how the great state of Missouri answers that for its business owners.
Is Shipping Taxable in Missouri?
Here’s what the Missouri Department of Revenue in the Show-Me State shows us:
In other words, shipping charges are part of the cost of the purchase and are therefore taxable if the item you are selling is also taxable. Generally, if the item is not taxable then shipping is also not taxable. (Important to note: Starting August 28, 2017 shipping will no longer be taxable in Missouri. Read more about the change to Missouri shipping taxability here.)
If you sell online and the product you sell is taxable, you will most likely need to charge sales tax on shipping charges in Missouri. (Important to note: Starting August 28, 2017 shipping will no longer be taxable in Missouri. Read more about the change to Missouri shipping taxability here.)
Still have questions? Ask away in the comments.