West Virginia – Updated Sales and Use Tax Guide for Doctors

SALT Report 2872 – The West Virginia State Tax Department revised a publication that discusses the application of sales and use tax to the business activities of doctors.  The publication provides that in most cases, doctors are engaged in the provision of professional medical services.

As a result, any fees charged for medical examinations or treatments and charges for drugs, supplies, and materials that are used to provide the professional medical service are exempt from sales and use taxes. However, if a doctor sells non-prescription medications, or medical products and supplies, they must collect the sales tax from their patients and remit the tax to the State Tax Department.

Sales by Doctors

The revised publication reflects that sales of dietary supplements are not subject to tax if the product meets 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,
  • It 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 for use as a sole item of a meal or of the diet, and
  • Is required to be labeled as a dietary supplement, which is identified by the “Supplemental Facts” box found on the label

Purchases by Doctors

Purchase of drugs, durable medical equipment, mobility-enhancing equipment and prosthetic devices by doctors or other health care providers that will be dispensed with a prescription and will be used to diagnose, cure, mitigate, treat, or prevent injury or disease are exempt from the consumers sales and use tax.

However, doctors must pay sales or use tax if they make purchases of non-exempt equipment, supplies, materials, or other products that will be used or consumed in the provision of professional medical services.

For Further Information

West Virginia State Tax Department – Publication TSD-377