Tax Type
Retail Sales and Use Tax
Description
Hairpieces; Prosthetic exemption does not apply
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
06-29-1988
June 29, 1988
Re: Request For Ruling/Retail Sales and Use Tax
Dear***************
This is in reference to your letter of March 8, 1988, in which you requested a ruling as to whether the hairpieces you sell qualify for exemption from the retail sales and use tax.
FACTS
*********** ("The Taxpayer") is a retailer of hairpieces for men, women and children. The hairpieces are sold to individuals who suffer hair loss due to burns, radiation treatments for cancer, alopecia (a disease that affects the hair follicle), and other accidental injuries. The hairpieces are also sold to individuals for cosmetic purposes where there is no injury or illness .,
RULING
Va. Code §§58.1-602(19), 58.1-603, and 58.1-604, set forth the general rule that all sales of tangible personal property are subject to retail sales and use tax. Virginia Retail Sales and Use Tax Regulation 630-10-35.2 states that taxation is the rule and exemption is the exception; therefore, exemptions are strictly construed.
Va. Code §58.1-608(22), provides an exemption from the sales and use tax for prosthetic devices and durable medical equipment.
Prosthetic devices are defined as "devices which replace a missing part or function of the body." Virginia Retail Sales and Use Tax Regulation §630-10-65(B)(1). Since the hairpiece does not replace a missing part of the body (hair is not a body part as is an arm or a leg), the "prosthetic exemption" does not apply.
§630-10-65(F) of the Virginia Retail Sales and Use Tax Regulations states:
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- Durable medical equipment is that which: (1) can withstand repeated use; (2) is primarily and customarily used to serve a medical purpose; (3) generally is not useful to a person in the absence of illness or injury; and (4) is appropriate for use in the home. In order for an item to be exempt from the tax, it must meet all of the above criteria. The fact that an item is purchased from a medical equipment supplier is not dispositive of its exempt status; the item must satisfy the definition of durable medical equipment.
- Durable medical equipment is that which: (1) can withstand repeated use; (2) is primarily and customarily used to serve a medical purpose; (3) generally is not useful to a person in the absence of illness or injury; and (4) is appropriate for use in the home. In order for an item to be exempt from the tax, it must meet all of the above criteria. The fact that an item is purchased from a medical equipment supplier is not dispositive of its exempt status; the item must satisfy the definition of durable medical equipment.
Based on the foregoing and on the general rule that exemptions from taxation are strictly construed, I find no basis for granting an exemption from the sales and use tax.
If you have any further questions, please contact the Department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner