LR 8376
Taxability of Online Sales
November 24, 2025
November 24, 2025
LR 8376
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated October 3, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a California company selling personal property at retail. Applicant is registered in Missouri for use tax but not for sales tax. It uses a third-party logistics company (3PL) located in Missouri to store and fulfill online retail orders. It sells and ships orders both within and outside the state of Missouri.
ISSUE 1:
Are orders fulfilled and shipped from outside Missouri to addresses in Missouri subject to Missouri use tax?
RESPONSE 1:
Yes. Orders fulfilled and shipped from outside Missouri to addresses in Missouri are subject to Missouri use tax.
"A tax is hereby levied and imposed [...] upon all sellers for the privilege of engaging in the business of selling tangible personal property" in the state of Missouri. Section 144.020.1, RSMo.
ISSUE 2:
Are orders fulfilled and shipped from outside Missouri to addresses outside Missouri subject to Missouri sales or use tax?
RESPONSE 2:
No. Orders shipped from outside Missouri to addresses outside Missouri are not subject to either Missouri sales or use tax.
Section 144.020.1, RSMo, imposes a tax "upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state." In this case the goods being sold are not located within Missouri or delivered to a Missouri location, therefore their sale is not subject to Missouri Sales tax.
ISSUE 3:
Are orders fulfilled and shipped from inside Missouri to addresses outside Missouri subject to Missouri sales or use tax?
RESPONSE 3:
No. See Response 2. The personal property is delivered outside Missouri and therefore is not subject to Missouri sales or use tax.
ISSUE 4:
Are retail orders fulfilled by Applicant's Missouri 3PL and shipped to Missouri addresses subject to Missouri sales or use tax?
RESPONSE 4:
Yes. Retail orders fulfilled by Applicant's Missouri 3PL and shipped to Missouri addresses are subject to Missouri sales tax.
"A tax is hereby levied and imposed [...] upon all sellers for the privilege of engaging in the business of selling tangible personal property", in the state of Missouri. Section 144.020.1, RSMo.
12 CSR 10-113.200(1) states that:
In general, a sale of tangible personal property is subject to sales tax if title to or ownership of the property transfers in Missouri. The seller must collect and remit the sales tax.
In this case title passes inside Missouri, therefore sales tax must be paid.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Senior Counsel Kent L. Brown, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Trish Vincent