SALT Report 2903 – The West Virginia State Tax Department recently revised its publication that discusses the sales tax exemption for drugs, durable medical equipment, mobility enhancing equipment, and prosthetic devices dispensed under a prescription.
Generally, purchases of these items by a health care provider to be dispensed under a prescription and will be used in the diagnosis, cure, mitigation, treatment, or prevention of injury or disease are exempt from consumers sales and use tax.
However, purchases of non-prescription drugs and other over-the-counter healthcare items will remain subject to sales tax when purchased by a health care provider or when purchased by a consumer from a retailer.
Updates to the publication reflect that drug samples are not subject to tax if the pharmaceutical manufacturer provides them to the physician. The sample must be dispensed to the patient with a prescription and used in the diagnosis, cure, mitigation, treatment, or prevention of injury or disease.
Additionally, the publication provides that a “health care provider” is any person licensed to prescribe drugs, durable medical equipment, mobility enhancing equipment and prosthetic devices intended for use in the diagnosis, cure, mitigation, treatment or prevention of injury or disease.
A “health care provider” also includes any hospital, medical clinic, nursing home or providers of inpatient or outpatient hospital services, physician services, nursing services, ambulance services, surgical services, or veterinary services.
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