The Pennsylvania Department of Revenue is auditing selected physician practices to measure their compliance with sales and use tax laws. This article provides an overview of Pennsylvania sales and use tax laws below.
Sales and use taxes are imposed on the retail sale, consumption, rental, or use of tangible personal property in Pennsylvania. These taxes are also imposed on the cleaning, altering, or repairing of such property and specific services.
Sales tax is normally charged, collected, reported, and remitted by the vendor. Use tax is self-assessed, reported, and remitted to the commonwealth by the purchaser when the vendor does not charge sales tax, such as on an Internet purchase.
The sales tax and use tax rates in Pennsylvania are 6 percent except in Philadelphia and Allegheny counties, where there is an additional 1 percent local sales and use tax.
While physician services are not among the services that are taxable, physician practices do sell or purchase a number of items and services that are subject to sales or use tax.
| Examples |
| Taxable items and services | Tax-exempt items and services |
| Sold by practice | Purchased by practice |
- Acne cleaners
- Contact lenses cleaning solution
- Reusable needles or syringes
- Medical thermometers
- Breast pumps
- Pregnancy test kits
| - Furniture
- Office supplies
- Computer equipment
- Building maintenance or building cleaning services
- Collection services
- Lawn care services
- Secretarial or editing services (including transcription)
- Employment agency services
| - Prescription and nonprescription medicines and drugs
- Various medical supplies
- Crutches
- Prescription eyeglasses or sunglasses
- Gauze
- Disposable needles
- Vitamins
- Disposable specimen containers
|
Additional information is available on the Department of Revenue's website. Enter “medical supplies” into the search.
This article provides general legal information. It is not intended as legal advice. Laws and procedures change frequently and are subject to differing interpretations. Physicians should consult their attorney if they are in need of legal guidance.