Cancer Treatment Device Exempt as Durable Medical Equipment.

Monday, November 10th, 2014

 
 
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Wisconsin
General

Wisconsin recently released a private letter ruling stating that a cancer therapy device is exempt durable medical equipment.

Tumor Treating Fields ("TTFields") therapy is a solid brain tumor cancer treatment. The therapy uses low intensity alternating electric fields to disrupt certain cancer cells. The electric field is applied to the brain through electrodes placed on the scalp. The electric field generator attached to the electrodes is carried in a bag. The electrodes, field generator, and associated accessories are TTFields therapy devices.

Wisconsin exempts sales of durable medical equipment and prosthetic devices. Durable medical equipment (1) is primarily and customarily used for a medical purpose related to a person, (2) can withstand repeated use, (3) is not generally useful to a person who is not ill or injured, and (4) is not placed in or worn on the body. Durable medical equipment is exempt from sales tax when it is sold for use "in a person's home." "In a person's home" means that the device can be used where the patient lives and during daily actives. A prosthetic device is a replacement, corrective, or supportive device that is placed in or worn on the body to artificially replace a missing portion of the body, to prevent or correct a physical deformity or malfunction, or to support a weak or deformed portion of the body. Prosthetic devices for human use are always exempt from sales tax.

While TTFields therapy devices are attached to the body, they are not fully supported by the body. TTFields treatment also does not treat a deformity or missing portion of the body. The devices are attached to the body, supported in a bag, and repeatedly used to treat a medical condition. Therefore, TTFields therapy devices are durable medical equipment rather than prosthetic devices. TTFields therapy devices are exempt from sales tax when sold for in-home use.

http://www.revenue.wi.gov/ise/wtb/186.pdf#page=16


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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.

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