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taxable when the items are purchased in bulk by a dentist and then dispensed to a particular patient, even if the items withdrawn from the bulk inventory are modified for a specific patient. 23 Va.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.

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...