Training on Electronic Medical Records System Taxable in Virginia

Monday, October 13th, 2014

 
 
A doctor holding a medical record.
Share
Link
Virginia
General

The Virginia Tax Commissioner ("Commissioner") recently ruled that a surgery center's purchase of training services with a medical records system was subject to tax.

The taxpayer operated a surgery center as well as retail optical stores. It purchased an electronic medical records system (i.e. software). Along with the system, the taxpayer purchased implementation and training services. The charges for the training were listed as instructor fees in the contract.

Virginia taxes sales of tangible personal property, including hardware and canned software. It does not generally tax sales of professional services such as training. Tax applies to the price of a taxable sale. The price is the total amount for which a taxable item is sold, including any services that are part of the sale.

The Commissioner determined that the training services were part of the sale of the records system. The sale of the training services was a part of the same contract as the sale of the records system. The charge for training was therefore taxable as part of the charge for the records system.

http://www.policylibrary.tax.virginia.gov/OTP/Policy.nsf/b4013b39032881238525697b00598b51/a486fe634093fcb585257d6a00649046?OpenDocument


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.

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...

Economic Nexus in Utah

Wednesday, August 1st, 2018 -Effective January 1, 2019, certain out-of-state sellers will be required to collect and pay Utah sales or use ...