Missouri – Sales of Injectable Medications

SALT Report 2582 – The Missouri Department of Revenue issued a Letter Ruling regarding the taxability of various injectable medications designed to treat male sexual dysfunction. The medications are sold pursuant to a prescription and are designed for ongoing, at-home use. Therefore, when a male patient is prescribed this type of medication, the Taxpayer will schedule an office visit to show the patient how to perform the injection at home. The Taxpayer requested a ruling to determine whether its in-office demonstrations would subject its sales of the medication to tax.

In its response, the Department referred to Section 144.030.2(19), RSMo, which 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…”

Based on this regulation, the Department determined that because the medication prescribed and sold by the Taxpayer can only be dispensed with a prescription written by a licensed physician, the Taxpayer’s sales of the medication are not subject to tax. This applies regardless of whether the Taxpayer first uses the medication in its office for demonstration purposes.

For Further Information

Missouri Department of Revenue – Letter Ruling #LR 7249