West Virginia – Pharmacies and Sales Tax

SALT Report 2904 – The West Virginia State Tax Department updated a publication that provides general information regarding the sales tax obligations of pharmacies. Generally, pharmacies that sell health and beauty aids, household goods, and prescription drugs are required to collect and remit sales tax on these items.  However, this provision does not apply to the following:

1) Sales of drugs, durable medical goods, mobility-enhancing equipment, and prosthetic devices dispensed upon prescription,

2) Sales of insulin to consumers for medical purposes,

3) Sales of dietary supplements if they meet all of the following requirements:

  • It is intended to supplement the diet,
  • It contains one or more of the following ingredients:  a vitamin, a mineral, an herb or other botanical, an amino acid, a dietary substance for use by humans to increase the total dietary intake, or a concentrate, metabolite, constituent, extract or a combination of any of the above ingredients,
  • Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or, if not intended for ingestion in the above form, is not represented as a conventional food and is not represented as a sole a meal replacement, and
  • Is required to be labeled as a dietary supplement as required by 21 CFR 101.36, and identifiable by the “Supplemental Facts” box found on the label

4) Purchases by a health care provider of drugs, durable medical equipment, mobility enhancing equipment and prosthetic devices to be dispensed under a prescription and intended for use in the diagnosis, cure, mitigation, treatment, or prevention of injury or disease

Pharmacies are retailers; therefore purchases of equipment, supplies, or other items for use in the business are subject to sales and service taxes.  However this does not apply to purchases for resale. In order to purchase items exempt from sales tax for resale purposes, the pharmacy must provide the vendor with an exemption certificate – Form F0003.

For Further Information

West Virginia State Tax Department – Publication TSD-383