Are transfers of video-game cosmetic items and paid online-software access taxable in Missouri?

Plain-English summary

A Missouri company operated an online marketplace where users arranged transfers of digital cosmetic items for a video game. It supplied listing, search, checkout, dispute, and payout interfaces, while another platform maintained the accounts and digital transactions. The company did not take custody of the items. It also sold optional access to online software features.

Missouri answered that the digital-item transfers were not taxable sales or services because electronically stored items were not tangible personal property under the provision it applied. The Department concluded that the company was not required to act as a marketplace facilitator for these transfers. It also found that the optional paid software access was not among Missouri's enumerated taxable services, so no sales or use tax sourcing measure applied to that access in this ruling.

The source says the company could not collect and transmit payments arising from user-to-user sales, while also describing a separate payment processor and possible marketplace fees. It does not provide transaction contracts or a fuller explanation of that distinction. The marketplace conclusion should therefore be read only with the Department's stated facts and reasoning.

What this means for you

Digital marketplaces

The ruling addresses transfers of intangible game items and the applicant's described role. Check what actually transfers, who takes custody, and who collects and transmits the sale payment before applying its result to another platform.

Software sellers and tax preparers

The Department treated this optional online access as a non-enumerated service. It did not address a different software delivery model or bundled tangible products.

Common questions

Were the digital cosmetic-item transfers taxable?

No. Missouri said the electronically stored items were intangible, rather than taxable tangible personal property.

Did the company have to collect tax as a marketplace facilitator?

No, on the transfers and payment facts described in this ruling.

Was optional paid access to the company's online software taxable?

No. The Department said that subscription service was not one of Missouri's enumerated taxable services.

Citations and references

• Section 536.021.10, RSMo; 12 CSR 10-1.020
• Section 144.020.1(1), RSMo
• Section 144.752, RSMo
• 12 C.S.R. 10-l 13.400(2)(c), as printed in the ruling; the citation is irregular, so check the official regulation before relying on it

Verbatim support

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.

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).

Source

• Landing page: Missouri DOR Rulings Search
• Ruling: LR 8408

Original ruling text

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