Taxability of Certain Clinical Medical Trial Services Discussed in New York

Monday, June 4th, 2012

 
 
Share
Link
New York
General

The New York Department of Taxation and Finance recently issued guidance regarding the taxability of certain services offered in conjunction with clinical medical trials. N.Y. Advisory Op. of the Commr. of Taxn. & Fin. TSB-A-12(11)S (May 15, 2012). The petitioner performs global patient recruitment and retention services for medical drug companies and medical equipment supply companies. They help recruit qualified patients to participate in various drug studies offered by these medical drug and equipment companies. This recruitment process involves conducting advertising campaigns through various media outlets as well as caller outreach.

New York imposes sales tax on the retail sale of tangible personal property and certain enumerated services. In New York, advertising services are exempt from tax because they are not specifically listed as a taxable service. Therefore, various service offered by the petitioner, including developing advertising campaigns and websites for clients, conducting email campaigns, and any direct mailing campaigns are exempt from tax as advertising service (N.Y. Tax Law sec. 1105(c)(1)). Additionally, the operation of call centers are also exempt from tax since it is not an enumerated service subject to tax in New York.

However, if tangible personal property is exchanged between the petitioner and client, the petitioner will be liable for tax on those items. For example, the petitioner's creation of site kit materials, which include posters, flyers, brochures, etc., will be subject to tax because taxable tangible personal property is included in the exchange. Additionally, while direct mailing services are considered to be an exempt advertising service, any tangible personal property purchased in conducting the direct mail campaign is subject to tax if the property is delivered to the petitioner in New York.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...