Virginia Rules Bulk Sales of Dental Equipment, Supplies, and Implants to Dentists Are Taxable

Thursday, May 23rd, 2013

 
 
Share
Link
Virginia
General

In a recent ruling by the tax commissioner, Virginia has confirmed that its sales tax exemption for prosthetic devices and durable medical equipment does extend to cover dental devices and equipment, but it only applies to sales to an individual and generally not to sales to a dentist. Va. Rul. of the Tax Commr. No. 13-68 (May 10, 2013).

The ruling addressed a seller of dental equipment, supplies, and implants. Virginia's Department of Taxation audited the dental supplier and assessed tax on its sales of durable medical equipment. The dental supplier disputed the assessment and claimed that its sales were exempt sales of durable medical equipment.

Virginia generally taxes sales of tangible personal property. Va. Code Ann. secs. 58.1-602, 58.1-603(1)-(3), 58.1-604(1)-(3). But, Virginia exempts sales of "prosthetic devices . . . other durable medical equipment and devices, and related parts and supplies specifically designed for those products . . . when such items or parts are purchased by or on behalf of an individual for use by such individual." Va. Code Ann. sec. 58.1-609.10(10). Virginia's sales tax regulations explain that sales to dentists are taxable when the items are purchased in bulk by a dentist and then dispensed to a particular patient, even if the items withdrawn from the bulk inventory are modified for a specific patient. 23 Va. Admin. Code 10-210-500.

In this case, the dental supplier did not provide the Department of Taxation documentation to prove that the contested durable medical equipment was purchased on behalf of a specific patient. Therefore, despite the dental supplier's protests, the commissioner ruled that the dental suppliers sales were taxable.


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.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...