Tax Type
Retail Sales and Use Tax
Description
Nondurable medical equipment and supplies
Topic
Exemptions
Property Subject to Tax
Date Issued
07-02-1986
July 2, 1986
Re: Ruling Request / Sales and Use Tax
Dear ******************
This will reply to your letter of April 1, 1986 seeking information on the application of the sales and use tax to a product marketed by ************** (taxpayer), known as ********************.
FACTS
According to your letter and sample materials enclosed, ******** is a sterile disposable ******designed for hospital operating room use during surgical procedures.
RULING
There is no general exemption in the retail sales and use tax for sales of nondurable medical equipment and supplies such as the one described above. Therefore, I cannot find basis for granting an exemption to taxpayer's product in this case.
However, §58.1-608(23) of the Virginia Code provides an exemption from the sales and use tax for "[t]angible personal property for use or consumption by a college or other institution of learning, a hospital, etc... provided such college, institution of learning,... [or] hospital, ... is conducted not for profit." In addition, §58.1-608(18) of the Code exempts from the tax, tangible personal property for use or consumption by the Commonwealth, any political subdivision of the Commonwealth, or tho United States."
Therefore, sales of taxpayer's product to hospitals which qualify for either of the above referenced exemptions would qualify for exemption from the tax if made pursuant to appropriate certificates of exemption. However, if it has not done so already, taxpayer should register with the department to collect and report the tax in connection with all other sales of its product to Virginia purchasers made in the absence of such exemption certificates. (See copies of §§630-10-45 and 630-10-47 of the Virginia Retail Sales and Use Tax Regulations attached)
Lastly, although its sales would not appear to qualify for exemption from the tax on this basis, I have enclosed a copy of our regulations section governing sales in interstate commerce for taxpayers future reference. (See §630-10-51)
I hope all of the above has answered your question, but please let me know if we may be of further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
attachments
Rulings of the Tax Commissioner