The Taxability of Prepaid Phone Cards is Discussed in Missouri

When a Missouri employee purchases prepaid calling cards, by way of payroll deductions, from an out- of- state calling card provider, the sale is subject to Missouri sales tax. There are no exceptions to this tax liability, therefore, it does not matter how the cards are purchased, whether online, via telephone or in person, they are still subject to sales tax. Additional local taxes are also applicable based on the location of the employee’s company. (Letter Ruling No. LR5106, Missouri Department of Revenue, September 18, 2008).

Posted on February 18, 2009