SALT Report 1524 – The Missouri Department of Revenue determined that a drug producer’s sales of a new FDA approved injectable drug to physicians for use in physician’s offices are not subject to Missouri sales tax. The Drug is of the type that may be sold by a licensed pharmacist as a prescription drug, however in this case, the Drug is prescribed to the patient by a physician and is typically injected in the physician’s office by the physician or a supervised nurse.
Section 144.030.2(18), RSMo provides an exemption from sales tax for “all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items, including samples and materials used to manufacture samples which may be dispensed by a practitioner authorized to dispense such samples.”
Therefore, based on the above regulation, sales of the Drug to physicians are not subject to sales tax.
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