Tax Type
Retail Sales and Use Tax
Description
Medical Equipment and Devices; Diabetic Products
Topic
Taxability of Persons and Transactions
Date Issued
05-29-1991
May 29, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your letter dated July 27, 1990 in which you request a ruling on the taxability of certain diabetic products which the ****************sells to customers.
RULING
Va. Code §58.1-608(7)(b) provides an exemption from the sales and use tax for:
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- insulin and insulin syringes, and equipment, devices or chemical reagents which may be used by a diabetic to test or monitor blood or urine, when such items or parts are purchased by or on behalf of an individual for use by such individual.
While an exemption is provided for certain diabetic products, this statute does not exempt all items purchased for use by a diabetic. Specifically, the exemption applies to insulin and insulin syringes, and items used to test or monitor blood or urine. other items, such as special diabetic foods, cookbooks, and general purpose supply items, are not generally or specifically exempt under the statute and would be subject to the tax.
Additionally, this exemption applies to diabetic products that are purchased by or for an individual using the items; purchases by a for profit hospital or nursing home or by a licensed physician for use in his practice are subject to the tax, unless the purchase is made on behalf of a specific patient.
The taxable/exempt treatment of the specific items you listed are provided below:
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- EXEMPT:
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- Blood testing strips
Blood glucose monitors
Finger lancing devices
Insulin Injection devices ("Inject-Ease")
Lancets to obtain blood samples
Syringe magnifying devices
Syringe needle clippers
Urine glucose testing strips
- Blood testing strips
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- TAXABLE:
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- Alcohol swabs
Batteries for monitoring machines
Carrying cases for insulin and syringes
Cotton balls
Diabetic diet cookbooks
Glucose tablets*
Medicool Cases
- Alcohol swabs
NOTE: Effective July 1, 1992, glucose tablets will be nontaxable under Va. Code §58.1-608(7)(o), which provides an exemption for nonprescription drugs and proprietary medicines.
I hope the above answers your questions. However, please contact the department if you need further assistance.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner