Tax Type
Retail Sales and Use Tax
Description
Implants and prosthetic devices
Topic
Exemptions
Property Subject to Tax
Date Issued
04-25-1994
April 25, 1994
Re: Request for Ruling: Retail Sales & Use Tax
Dear**********
This will respond to your letter of October 28, 1993 in which you seek a ruling on the application of the retail sales and use tax to purchases by your corporation (the "Taxpayer") of implants for use in plastic surgery.
FACTS
The Taxpayer, a professional corporation comprised of a licensed physician in the field of plastic surgery, purchases breast and chin implants, for use in its practice. You request a ruling on the taxability of purchases of implants for particular patients.
RULING
The department recently addressed the taxability of implants in P.D. 94-109 (4/13/94), copy enclosed. As the letter indicates, the taxable status of implants is governed by the exemption from the retail sales and use tax in Va. Code §58.1-609.7(2) for "prosthetic devices,...and other durable medical equipment and devices...when such items or parts are purchased by or on behalf of an individual for use by such individual." "Prosthetic devices" are defined in Virginia Regulation (VR) 630-10-65 as devices "which are used to replace a missing part or function of the body...."
Thus, implants which are used to replace a missing body part, as in reconstructive surgery, may be purchased exempt from the tax when such purchases are made by or on behalf of specific individuals. However, implants used for cosmetic purposes are not replacing a missing body part or function and thus do not qualify for exemption from the tax, regardless of whether they are purchased by or on behalf of an individual.
Furthermore, the fact that an implant may be prescribed by a licensed physician has no bearing on its tax status as the exemption in Va. Code §58.1-609.7(1) for prescription drugs is limited to drugs themselves, and not devices. Likewise, the exemption for controlled drugs when purchased for use by a physician is limited to drugs.
If you have any further questions regarding this matter, please let me know
Sincerely,
Danny M. Payne
Acting Tax Commissioner
OTP/7491H
Rulings of the Tax Commissioner