The Missouri Department of Revenue (DOR) issued Letter Ruling No. LR 7735 addressing questions proposed regarding Voice Over Internet Protocol (VoIP) and support services provided by an out-of-state information technology service company to a customer located in Missouri. The letter confirms that VoIP services are indeed taxable services pursuant to Sections 144.020.1(4) and 144.010.1(11) RSMo.
Section 144.030.2(45) RSMo was enacted during the 2016 legislative session and exempts the following from state and local sales and use taxes:
“[a]ll internet access or the use of internet access regardless of whether the tax is imposed on a provider of internet access or a buyer of internet access.”
Pursuant to Section 144.030.2(45)(c), “internet access” includes the following:
“the purchase use, or sale of communications services, including telecommunications services as defined in section 144.010...”
However, Section 144.030.2(45)(d) stipulates that “nothing in this subdivision be interpreted as an exemption from taxes due on goods or services that were subject to the tax on January 1, 2016.” As such, the Missouri DOR concluded that VoIP services continue to be taxable because they were taxable on January 1, 2016.
The letter also addresses managed computer and server updating, managed antivirus service, and managed e-mail services provided by the taxpayer that did not include VoIP services. The DOR confirmed that these services are not included in the enumerated services found in Section 144.020.1 RSMo and are not subject to sales tax.
Lastly, the letter also confirms the taxpayer’s responsibility to collect vendor’s use tax on computer hardware and software it sells and ships to Missouri customers. Based on the taxpayers activities of selling tangible personal property to customers located in Missouri and allowing its employees to enter Missouri for technical assistance, it meets the nexus requirements of “engaging in business activities within the State” as described in Section 144.605, RSMo.