Georgia – Durable Medical Equipment, and Prosthetic Devices Rule Amended

SALT Report 1867 – The Georgia Department of Revenue amended Rule 560-12-2-.30 Drugs, Durable Medical Equipment, Prosthetic Devices, and Other Medical Items.

Durable Medical Equipment

The regulation states that durable medical equipment may be purchased tax exempt for resale only if title and possession will be permanently transferred to the person to whom a prescription for the equipment is issued or if the equipment is transferred pursuant to a lease agreement, to the person to whom a prescription has been issued.

If the item can be sold without a prescription the purchaser may purchase the item for resale if they provide the vendor with Form ST-5.

If a service provider uses, possesses or controls the durable medical equipment while providing a medical service, the item is not considered to have been sold or used pursuant to a prescription and the service provider is liable for sales or use tax on the cost price of the item.

Prosthetic Devices

If a prosthetic device can be sold or used only pursuant to a prescription under federal or state law and title and possession of the device will be permanently transferred to the person to whom a prescription is issued, the entity, hospital, clinic, or medical practice groups, transferring the device may purchase the item tax exempt without furnishing Form ST-5.

If a prosthetic device may be sold without a prescription, and title and possession will be permanently transferred to a person pursuant to a prescription, the entity transferring the device must provide Form ST-5 to its vendor in order to purchase the item tax free for resale. The purchasing entity may then transfer the item tax exempt to the person when the transfer is made pursuant to a prescription.

For Further Information:

Georgia Department of Revenue – New Sales Tax Regulations

Form ST-5 Georgia Dealer or Purchaser Exemption Certificate