Ga. Comp. R. & Regs. R. 560-12-2-.30 - Drugs, Durable Medical Equipment, Prosthetic Devices, and Other Medical Items
(1)
Purpose. This Rule sets forth the application of sales and use
tax to certain drugs, durable medical equipment, prosthetic devices, and other
medical items.
(2)
Definitions. For the purposes of this Rule, the following definitions
and explanations of terms shall apply:
(a)
"Drug" means a compound, substance, or preparation, and any component of a
compound, substance, or preparation, other than "food and food ingredients,"
"dietary supplements," or "alcoholic beverages":
1. Recognized in the official United States
Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or
official National Formulary, or supplement to any of them; or
2. Intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease; or
3. Intended to affect the structure or any
function of the body.
(b) Durable medical equipment.
1. "Durable medical equipment" means
equipment, including repair and replacement parts for the same, that:
i. Can withstand repeated use;
ii.Is primarily and customarily used to serve
a medical purpose;
iii.Generally is
not useful to a person in the absence of illness or injury;
iv.Is not worn in or on the body;
and
v. Is not "mobility enhancing
equipment."
2. Examples
of durable medical equipment include but are not limited to:
i. Hospital beds, mattresses, and
bedding-related attachments;
ii.Drug infusion equipment (non-implanted),
nebulizers, vaporizers, oxygen concentrators, infant apnea monitors, and
ventilators;
iii.Sitz bath chairs,
bed pans, urinals;
iv.Heat lamps,
heat pads, and hot water bottles; and
v. Blood glucose monitors, electronic nerve
stimulators (non-implanted), breast pumps, and insulin infusion pumps
(non-implanted).
(c) Mobility enhancing equipment.
1. "Mobility enhancing equipment" means
equipment, including repair and replacement parts to the same, that:
i. Primarily and customarily is used to
provide or increase the ability to move from one place to another and that is
appropriate for use either in a home or a motor vehicle; and
ii.Generally is not used by persons with
normal mobility; and
iii.Does not
include any motor vehicle or equipment on a motor vehicle normally provided by
a motor vehicle manufacturer.
2. "Mobility enhancing equipment" does not
include "durable medical equipment."
3. Examples of mobility enhancing equipment
include but are not limited to:
i. Adjustable
or raised toilet seats;
ii. Tub and
shower stools or benches;
iii. Bed
pull-up Ts;
iv. Canes;
v. Crutches;
vi. Grab bars and hand rails;
vii. Lift chairs;
viii.Patient lifts;
ix. Scooters and transporters for disabled
persons;
x. Specialty
chairs;
xi.Transfer belts and
benches;
xii. Walkers;
and
xiii. Wheelchairs and
ramps.
(d)
"Natural person" means an individual human being.
(e) "Over-the-counter drug" means a drug that
contains a label identifying the product as a drug as required by
21 C.F.R. §
201.66. The "over-the-counter
drug" label includes:
1. A "Drug Facts"
panel; or
2. A statement of the
"active ingredient(s)" with a list of those ingredients contained in the
compound, substance, or preparation.
(f) "Physician" means a person licensed to
practice medicine pursuant to Article 2, Chapter 34 of Title 43.
(g) "Prescription" means an order, formula,
or recipe issued in any form of oral, written, electronic, or other means of
transmission by a duly licensed practitioner authorized by the laws of this
state.
(h) Prosthetic device.
1. "Prosthetic device" means a replacement,
corrective, or supportive device including repair and replacement parts for the
same worn on or in the body to:
i.
Artificially replace a missing portion of the body; or
ii.Prevent or correct physical deformity or
malfunction; or
iii.Support a weak
or deformed portion of the body.
2. "Prosthetic device" does not include
hearing aids and eyeglasses.
3.
Examples of prosthetic devices include but are not limited to:
i. Artificial implants such as artificial
arteries (e.g., vascular grafts, stents), hearts and valves (e.g., atrial,
mitral, annuloplasty rings), ears, nose, eyes (e.g., intraocular lenses), skin
and other tissues (e.g., collagen, hyaluronic acid), larynx, or any other
implant that replaces, in whole or part, a part of the human body;
ii.Bone nails, pins, screws, plates, fixation
devices, bone cement, wax, fillers, or other items surgically implanted into
the body used to correct deformities, or to preserve and restore the function
of the human skeletal system;
iii.Organ implants;
iv.Breast prostheses, including surgical
brassieres for post- mastectomy patients;
v. Cardiac pacemakers and implanted
cardioverter defibrillators;
vi.Implanted nerve stimulators;
vii.Implanted tissue expanders;
viii.Implanted devices used for
hydrocephalus;
ix.Surgical
mesh;
x. Gastric bands and
intragastric balloons;
xi.Colostomy, ileostomy and urostomy
appliances, including bags and necessary equipment required for attachment,
such as tubing;
xii.Electronic
speech aids if the patient had a laryngectomy or if the larynx is
inoperative;
xiii.Urinary
collection systems, including Foley catheters, when replacing bladder function
in cases of urinary incontinence;
xiv.Enteral or parenteral feeding systems and
their individual components (e.g., catheters, filters, extension tubing,
infusion pumps);
xv.Artificial
legs, arms and eyes, including terminal devices such as artificial
hands;
xvi.Braces, cervical
collars, abdominal belts, anti-embolism stockings, pressure/compression
garments, trusses, supports, suspensories, and similar devices worn on the body
to correct or alleviate a physical incapacity or injury;
xvii.Hoods and space shoes that replace part
of a foot;
xviii.Stump stockings
and harnesses essential to the effective use of an artificial limb,
and
xix.Dental crowns, implants,
complete and partial dentures, obturators and fillings.
(3)
Drugs.
(a) The sale or use of drugs
that are lawfully dispensable only by prescription for the treatment of natural
persons is exempt from Georgia sales and use tax. This exemption applies to all
purchasers including but not limited to individual consumers, hospitals,
clinics, and medical practice groups.
(b) Unless otherwise exempt, all sales of
over-the-counter drugs are subject to Georgia sales and use tax regardless of
whether they are dispensed under a prescription, even if the over-the-counter
drug is purchased on the advice or recommendation of a physician. Examples of
over-the-counter drugs include but are not limited to aspirin, acetaminophen,
ibuprofen, cold remedies, antacids, laxatives, and cold sore gels.
(c) Dealers must maintain sufficient
prescription documentation to support exempt sales.
(4)
Durable Medical Equipment.
(a)
Purchases for resale.
Durable medical equipment may be purchased tax exempt for resale only if
title and possession will be permanently transferred to a natural person to
whom a prescription for the equipment is issued or if full possession, control
and use will be transferred, pursuant to a bona fide lease agreement, to a
natural person to whom a prescription for the equipment is issued.
1. Durable medical equipment that can be sold
or used only pursuant to a prescription under federal or state law may be
purchased tax exempt for resale pursuant to this subparagraph without
furnishing form ST-5 (Sales and Use Tax Certificate of Exemption).
2. If an item of durable medical equipment
may lawfully be sold without a prescription, the purchaser must furnish form
ST-5 to its vendor in order to purchase the item tax free for resale.
(b)
Transfers to patients.
Pursuant to O.C.G.A. §
48-8-3(54)
durable medical equipment may be transferred tax exempt to a natural person to
whom a prescription for the equipment is issued.
(c)
Use by service providers.
If a service provider uses, possesses or controls an item of durable
medical equipment at any time in providing a medical service (including but not
limited to diagnostic, treatment, or rehabilitative services), the item is not
considered to have been sold or used pursuant to a prescription and the service
provider is liable for sales or use tax on the service provider's cost price of
the item.
(5)
Prosthetic Devices.
(a) If a
prosthetic device can be sold or used only pursuant to a prescription under
federal or state law, and title and possession will be permanently transferred
to a natural person to whom a prescription for the device is issued, the entity
(including hospitals, clinics, and medical practice groups) transferring the
device may purchase the item tax exempt without furnishing form ST-5 (Sales and
Use Tax Certificate of Exemption). The entity subsequently may transfer the
device tax exempt pursuant to O.C.G.A. §
48-8-3(54)
to a natural person to whom a prescription for the device is issued.
(b) If a prosthetic device may lawfully be
sold without a prescription, and title and possession will in fact be
permanently transferred to a natural person pursuant to a prescription issued
to that person, the entity transferring the device must furnish an ST-5 to its
vendor in order to purchase the item tax free for resale. The transferring
entity may then transfer the item tax exempt pursuant to O.C.G.A. §
48-8-3(54)
when the transfer is made to a natural person pursuant to a prescription issued
to that person.
(6)
Mobility Enhancing Equipment.
(a)
Purchases for resale.
Mobility enhancing equipment may be purchased tax exempt for resale only
if title and possession will be permanently transferred to a natural person to
whom a prescription for the equipment is issued by a physician or if full
possession, control and use will be transferred, pursuant to a bona fide lease
agreement, to a natural person to whom a prescription for the equipment is
issued by a physician.
1. Mobility enhancing
equipment that can be sold or used only pursuant to a prescription under
federal or state law may be purchased tax exempt for resale pursuant to this
subparagraph without furnishing form ST-5 (Sales and Use Tax Certificate of
Exemption).
2. If an item of
mobility enhancing equipment may lawfully be sold without a prescription, the
purchaser must furnish form ST-5 to its vendor in order to purchase the item
tax free for resale.
(b)
Transfers or sales to patients. Pursuant to O.C.G.A. §
48-8-3(72)
mobility enhancing equipment may be transferred tax exempt to a natural person
to whom a prescription for the equipment is issued by a physician.
(c)
Use by service providers.
If a service provider uses, possesses or controls an item of mobility
enhancing equipment at any time in providing a medical service (including but
not limited to diagnostic, treatment, or rehabilitative services), the item is
not considered to have been sold or used pursuant to a prescription and the
service provider is liable for sales or use tax on the service provider's cost
price of the item.
(7)
Other Medical Items.
(a)
Eyeglasses and contact lenses.
1. The sale of
eyeglasses and contact lenses is exempt from sales and use tax when the sale is
made to a natural person pursuant to a prescription issued to that
person.
2. The distribution of
prescription contact lenses by the manufacturer to licensed dispensers, that
are free samples not intended for resale and labeled as such, are exempt from
sales and use tax.
(b)
The sale of oxygen is exempt from sales and use tax when the sale is made to a
natural person pursuant to a prescription issued to that person by a licensed
physician.
For example, a medical service provider purchases oxygen from a seller and then sells the oxygen to a patient pursuant to a prescription issued to that patient by a licensed physician. The service provider's purchase is taxable unless the provider presents a resale certificate to the seller. The service provider's sale of oxygen to the patient is exempt under O.C.G.A. § 48-8-3(51).
(c) The sale of hearing aids is exempt from
sales and use tax. This exemption applies to all purchasers including but not
limited to individual consumers, hospitals, clinics, and medical practice
groups.
(d) The sale of insulin
syringes, insulin, and blood measuring strips is exempt from sales and use tax.
This exemption applies to all purchasers including but not limited to
individual consumers, hospitals, clinics, and medical practice
groups.
(e) Enteral nutrition and
parenteral nutrition are exempt from sales and use tax when sold to a natural
person pursuant to a prescription issued to that person.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.