South Carolina – Exemption for Medical Supplies

SALT report 1292 – The South Carolina Department of Revenue issued a Revenue Ruling regarding exemptions for medicines, prosthetic devices, and medical supplies.  The ruling addresses the taxability of certain items and the application of the exemption when sold to individuals, doctors, clinics, hospitals and similar facilities.

Summary of exemptions under SC Section 12-36-2120(28) includes but is not limited to:

Medicine sold by prescription.

In order for this exemption to be applicable, the medicine must be of a type that requires a prescription, the sale must require a prescription, and must actually be sold by prescription.  Accordingly, sales of medicine to a hospital, nursing home, or a similar institution or doctor are not exempt, as they do not require a prescription.

Prescription medicines used to prevent respiratory syncytial virus.

In order for this exemption to be applicable, the medicine must be prescribed; however, the medicine does not need to be sold by prescription. Therefore, sales of these medicines to a doctor, hospital, nursing home, or a similar institution are exempt.

Prescription medicines and therapeutic radiopharmaceuticals used in the treatment of rheumatoid arthritis, cancer, lymphoma, leukemia, or related diseases.

In order for this exemption to apply, with the exception of therapeutic radiopharmaceuticals, these medicines must be prescribed; however, the medicine does not need to be sold by prescription. Therefore, sales of these medicines and therapeutic radiopharmaceuticals to a doctor, hospital, nursing home, or a similar institution are exempt.

Prescription medicines used to relieve the effects of the treatment of rheumatoid arthritis, cancer, lymphoma, leukemia, or related diseases.

In order for this exemption to apply, the medicine must be prescribed; however, the medicine does not need to be sold by prescription.  Therefore, sales of these medicines to a hospital, nursing home or doctor are exempt.

Hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other diabetic supplies.

While a prescription is not required, in order for this exemption to apply, these items must be sold to a diabetic under the written authorization and direction of a physician.

Prosthetic devices sold by prescription.

In order for this exemption to be applicable, the sale requires a prescription and the device must replace a missing part of the body. A device that merely replaces a missing function is not exempt. Therefore, sales of prosthetic devices to a hospital, nursing home, or a similar institution or doctor are not exempt, as they do not require a prescription.

Revenue Ruling 11-3 supersedes Revenue Ruling 10-2 and all previous advisory opinions.

For Further Information:

South Carolina Department of Revenue – Revenue Ruling 11-3