Sales of Orthopedic Prosthetic Devices to Hospitals Ruled Taxable in South Carolina

Friday, April 22nd, 2016

Orthopedic prosthetic devices.
South Carolina

The South Carolina Supreme Court ruled that a hospital's purchases of orthopedic prosthetic devices were taxable.

A hospital provided surgeries to implant orthopedic prosthetic devices in patients. Before the surgeries, a doctor would choose the appropriate device from a prosthetic device vendor. The hospital paid for the device and paid tax on the purchase. It later asked for a refund of the taxes it paid, claiming that the sales were exempt.

South Carolina taxes hospitals' purchases of items used to provide services unless an exemption applies. The sale of a prosthetic device is exempt when the sale requires a prescription. The Court explained that these sales did not require a prescription because federal regulations permitted the doctors to purchase the devices without a prescription. As a result, the Court concluded that the sales were taxable.

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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.

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