LR 8408
Taxability of Digital Cosmetic Items
September 24, 2026
To Whom it May Concern:
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 July 27, 2026.
The facts presented in your letter ruling request are summarized as follows:
Applicant is a Missouri limited liability company based in Ozark, Missouri. Applicant operates an online peer-to-peer marketplace for Counter-Strike digital cosmetic items associated with , a popular online multiplayer video game, and Steam, a digital distribution platform. Steam and Counter-Strike are both owned and operated by Valve Corporation. Valve Corporation maintains the account and digital transaction system by which users purchase and sell the digital cosmetic items. At no point does Applicant take custody of the digital items. Rather, Applicant provides users with listing, search, offer, auction, checkout, transaction-status, dispute, and seller-payout interfaces. Stripe, a financial service, processes Applicant's user payments. Applicant may charge users with marketplace fees, and separately offers optional monthly, annual, and one-time access for online software features accessible through the website and an associated browser extension. Users may be located in Missouri or elsewhere.
ISSUE 1:
Do the transfers of the digital cosmetic items to Missouri users constitute taxable sales or services, such that Applicant must act as a marketplace facilitator?
RESPONSE 1:
No. The transfers of digital cosmetic items to Missouri users do not constitute taxable sales or services under Chapter 144. Because such transfers are not taxable, Applicant is not required to act as a marketplace facilitator.
Section 144.020.1(1), RSMo, provides:
"A tax is hereby levied and imposed...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."
Electronically stored information is not tangible personal property. Electronic documents are not tangible, and thus the sale of electronic documents does not constitute the sale of tangible personal property. Missouri does not tax non-tangible property. Therefore, Applicant's sale of digital cosmetic items is not subject to sales tax under Missouri statute.
Section 144.752, RSMo and 12 C.S.R. 10-l 13.400(2)(c) provide that a Marketplace Facilitator is a person that facilitates a sale by a marketplace seller and collects and transmits payments arising from the sale. Applicant cannot collect and transmit payments arising from sales conducted between users of Applicant's transfer service, nor can Applicant collect and remit taxes as applied to said sales. Therefore, Applicant cannot act as a marketplace facilitator.
ISSUE 2:
Is Applicant's paid software subscription service subject to Missouri sales or use tax, such that Applicant must abide by taxable measures and sourcing rules?
RESPONSE 2:
No. Similar to Applicant's digital transfer service, Applicant's paid software subscription service is not one of the enumerated services that are subject to Missouri sales or use tax (see response 1). Because Applicant's software subscription service is not subject to Missouri state sales or use taxes, there are no taxable measures or sourcing rules that Applicant must apply to transactions concerning such software access.
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 Legal Counsel Justin Dussold, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Trish Vincent