SALT Report 1310 – The West Virginia State Tax Department has revised their publication providing sales and use tax guidance for Dentists. In West Virginia, dentists are generally considered to be engaged in a single business activity—providing professional dental services. However, some dentists may also sell tangible personal property. This updated publication provides information regarding sales and use tax as it applies to those activities.
Sales by Dentists
When dentists provide dental services, they are engaged in a professional service activity and are not required to collect sales tax from their customers. This exemption from the collection of sales tax applies to any fees charged for dental examinations or treatments and charges for drugs, supplies and materials which are used in providing these services. This exemption may also include charges for nonprofessional services, such as the service of a dental hygienist but only when these activities are provided as an integral part of the professional dental service.
Purchases by Dentists
Dentists must pay sales or use tax when they make purchases of equipment, supplies, materials, medications or other products that will be used or consumed when providing professional dental services. Also, effective July 1, 1989, dentists must pay sales or use tax on all of their purchases for use or consumption in providing nonprofessional services.
The West Virginia use tax rate is 6%. Dentists who make taxable purchases from suppliers (including out-of-state suppliers) who do not collect West Virginia sales or use tax must pay the use tax directly to the West Virginia State Tax Department. The use tax must be paid on your West Virginia sales and use tax returns (Form WV/CST-200CU) and is due on or before the 20th day of the month following the ending of the filing period.
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