Idaho Admin. Code r. 35.01.02.100 - PRESCRIPTIONS
Sections 63-3612, 63-3613, 63-3622, 63-3622N, Idaho Code
01.
In General. Sales tax does
not apply to sales of drugs, oxygen, orthopedic appliances, orthodontic
appliances, dental prostheses including crowns, bridges, inlays, overlays,
prosthetic devices, durable medical equipment, eyeglasses, contact lenses, and
certain other medical equipment and supplies specifically named in Section
63-3622N, Idaho Code, when:
(3-31-22)
a. Purchased by a practitioner to
be administered or distributed to his patients if such practitioner is licensed
by the state under Title 54, Idaho Code, to administer or distribute such
items, or when; (3-31-22)
b.
Purchased by or on behalf of an individual under a prescription or work order
issued by a practitioner who is licensed by the state to practice one of the
following professions: physician, physician assistant, surgeon, podiatrist,
chiropractor, dentist, optometrist, psychologist, ophthalmologist, nurse
practitioner, denturist, orthodontist, audiologist, or hearing aid dealer or
fitter. Items purchased under the prescription or work order of a person who is
not a health care practitioner specifically named in Section
63-3622N(b),
Idaho Code, will not qualify for the exemption. (3-31-22)
c. Example: A physician issues a prescription
for a wheelchair to a nursing home patient. The nursing home delivers the
prescription to a wheelchair retailer and purchases the wheelchair on behalf of
the patient. No tax applies. (3-31-22)
d. Example: A nursing home purchases
wheelchairs for general use in its facility. Since the wheelchairs are not
purchased under prescription for a specific patient, sales tax applies.
(3-31-22)
02.
Orthopedic Appliances. The term orthopedic appliance includes
those braces and other external supports prescribed by a practitioner for the
purpose of correction or relief of defects, diseases, or injuries to bones or
joints. (3-31-22)
03.
Documenting Exempt Sales. The seller keeps the written
prescription or work order on file to document the exemption. Sales made
without a prescription or work order are taxable. The seller needs to be able
to identify sales which are exempt under prescription from sales which are
taxable. (3-31-22)
a. Refills of
prescriptions on file with a seller are exempt from tax. (3-31-22)
b. Some drugs may be lawfully sold without a
prescription. When sold over the counter without a prescription, the drugs are
subject to sales tax. When sold under a prescription, the drugs are exempt from
tax. (3-31-22)
04.
Purchases by Practitioners. A practitioner, who is licensed under
Title 54, Idaho Code, to administer or distribute a medical product listed in
Section 63-3622N, Idaho Code, may purchase
the item exempt from tax by issuing his supplier an exemption certificate
required by Rule 128 of these
rules. Only the medical items named in Section
63-3622N, Idaho Code, which the
practitioner is licensed to administer or distribute qualify for this
exemption. (3-31-22)
05.
Purchases by Nursing Homes and For Profit Hospitals. The Sales Tax
Act does not provide a general exemption from tax for purchases made by nursing
homes and similar facilities or by hospitals operated for profit, and as a
result, they pay tax on all purchases, unless those items are exempted by
Section 63-3622N, Idaho Code. An exemption
certificate is completed and provided to the vendor of the exempted items. See
Rule 128 of these rules.
(3-31-22)
06.
Sale of
Eyeglasses, Contact Lenses, and Related Products. The sale of
non-prescription eyeglasses, non-prescription contact lenses and related
products, such as carrying cases, non-prescription sunglasses, and cleaning
solutions is taxable. (3-31-22)
a. The sale
of eyeglasses and their frames, lenses, nose pieces, hinges, and related
eyeglass component parts required as part of a finished pair of eyeglasses sold
under a prescription is exempt from sales tax on and after July 1, 2015.
(3-31-22)
b. The sale of
prescription contact lenses on and after July 1, 2016, is exempt from sales
tax. (3-31-22)
07.
Dental and Orthodontic Appliances. The sale or purchase of
dentures, partial plates, dental bridgework, orthodontic appliances, and
related parts for such items by a dentist, denturist, orthodontist or other
practitioner is not a taxable sale. (3-31-22)
Notes
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No prior version found.