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How Missouri Handles Tax on Shipping

How Missouri handles tax on shipping: delivery is taxable when the seller must deliver, but optional stated delivery may be exempt; handling is always taxable.
Updated last year

In Missouri, shipping taxability depends on whether the seller is responsible for delivery.


General Rule

Taxable: Delivery charges are taxable if the seller is obligated to deliver the goods.

Exempt: If delivery is optional and separately stated, it may be exempt.


Handling Charges

Handling or combined “shipping & handling” fees are taxable in full.


Best Practices for Compliance

  • State delivery separately on invoices.
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  • Avoid bundling with handling, as this makes the fee taxable.
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Example

  1. Seller includes $25 delivery as part of the taxable sale → $25 is taxable.
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  2. Seller offers optional $25 delivery (separately stated) → $25 may be exempt.
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Stay Compliant with Kintsugi

Missouri’s rules hinge on delivery obligations. Kintsugi Intelligence ensures your invoices align with state rules automatically.


⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.

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