State Tax Day - Current, S.14, Missouri—Sales and Use Tax: Transfers of Digital Cosmetic Game Items and Software Subscriptions Not Taxable, (Sep 29, 2026)

Transfers of digital cosmetic items to Missouri users for an online video game, through an online marketplace, do not constitute taxable sales or services. Because such transfers are not taxable, the applicant is not required to act as a marketplace facilitator. 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 sales of digital cosmetic items are not subject to sales tax. The applicant cannot collect and transmit payments arising from sales conducted between users of the applicant's transfer service, nor can the applicant collect and remit taxes as applied to said sales. Therefore, the applicant cannot act as a marketplace facilitator.

Similarly, the applicant’s paid software subscription services are not subject to Missouri sales and use tax. Thus, there are no taxable measures or sourcing rules that the applicant must apply to transactions concerning such software access.

Letter Ruling LR 8408, Missouri Department of Revenue, September 24, 2026, ¶204-690