90-211 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Vision assist products

Topic

Taxability of Persons and Transactions

Date Issued

12-05-1990

December 5, 1990

Dear ****

This will reply to your letter of April 5, 1990, in which you request a ruling on the applicability of the Virginia retail sales and use tax to vision assist products sold to end users in * * * (the Taxpayer).

FACTS

The Taxpayer supplies vision assist products for the visually impaired. The Taxpayer requests a ruling on whether the sale of: (1) Optelec electronic products (CCTVs); (2) magnifiers; (3) monocular telescopes; and (4) hyperocular microscopic and prismatic spectacles are exempt from the tax under Va. Code § 58.1-608(7)(i) and Virginia Regulation (VR) 630-10-65(D).

RULING

Generally, Va. Code § 58.1-608(7)(a) provides that contact lenses and eyeglasses dispensed by or sold on prescription or work orders by optometrists, ophthalmologists or opticians are exempt from Virginia sales and use tax. VR 630-10-65(D)(6) provides that no exemption will be allowed for retail sales of eyeglasses or other optical goods not prescribed by licensed optometrists or ophthalmologists. The Regulation further provides that generally, sales of telescopes, binoculars, opera glasses and similar items are subject to the tax. However, these items, when intended for use by the visually handicapped, to take the place of or enhance eyeglasses, etc., may be exempt from the tax.
I will separately address the four areas listed by the Taxpayer below:

Electronic Products (CCTVs):

CCTVs are low vision reading systems that utilize closed circuit television technology for use in offices, classrooms or homes. Some units have the capability to interface directly with a computer. However, because CCTVs are not computers or typewriters per se, they do not fall under Va. Code § 58.1-608(7)(i) which exempts special typewriters and computers used by handicapped persons to communicate when prescribed by a physician. Therefore, unless provided for under another exemption, CCTVs sold in Virginia are subject to the tax.

Magnifiers (Aspherics hand held and stand models):

The main function of these units is to increase the apparent size of objects being viewed by adding focusing power to the eye. Areas of use include persons with impaired vision, hobby and craft use, industrial and graphic use, and school and education use. As provided in VR 630-10-65, optical goods not prescribed by a licensed optometrist or ophthalmologist are taxable. Therefore, the magnifiers sold by the Taxpayer are subject to the tax, unless prescribed by a licensed optometrist or ophthalmologist.

Monocular Telescopes:

These units are devices that increase the apparent size of objects being viewed by adding focus power for long distance for one eye and may be either hand held or mounted. Because these units are only dispensed in Virginia by prescription and are mounted to or are in addition to eyeglasses, sales of these devices would be exempt from the sales and use taxes under Va. Code § 58.1-608(7)(a).

Hyperocular Microscopic and Prismatic Half-eye Spectacles:

These devices are used to shift image position to align with the eyes. Because both of these units are fitted into eyeglasses and are only dispensed by prescription in Virginia, they are exempt from sales and use tax under Va. Code § 58.1-608(7)(a).

It should be noted that if monocular telescope and hyperocular microscopic and prismatic half-eye spectacles are allowed to be sold in Virginia without a prescription in the future, the tax will apply to all nonprescription sales.

If you have any further questions, please contact the Department.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner