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.
Avoid bundling with handling, as this makes the fee taxable.
Example
Seller includes $25 delivery as part of the taxable sale → $25 is taxable.
Seller offers optional $25 delivery (separately stated) → $25 may be exempt.
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.