Wisconsin: When Sales Tax Applies to Hospitals and Medical Clinics
- Sales Tax News
- Oct 21, 2014 | Gail Cole
While hospitals and medical clinics in Wisconsin are primarily in the business of providing exempt medical services, they are required to collect and remit tax on certain sales.
Unless the buyer provides a properly completed exemption certificate or a Certificate of Exempt Status (CES) number, sales of tangible personal property by hospitals and medical clinics are subject to tax in Wisconsin. Likewise, sales of taxable services and some digital goods are taxable.
Examples of taxable sales and rentals made by hospitals and medical clinics include:
- Medical alarm monitoring services
- Medical equipment, supplies and fixed assets
- Parking or providing parking spaces for motor vehicles
- Soft drinks
Charges for copies of medical records may or may not be taxable, depending on the situation.
- A hospital or clinic sells a photocopy, reprint, or tangible medium (like a CD) of the record to a customer in Wisconsin.
- A hospital or clinic makes a physical copy of digital version of a medical record and sells the copies to a purchaser in Wisconsin.
- A hospital or clinic scans a physical medical record and emails a digital copy to a customer in Wisconsin. The taxable service is the photographic service (copying the physical record). When in doubt as to where the customer receives the email, “the hospital or clinic should use the customer’s billing address to determine the location of where the service is furnished.”
- A hospital or clinic maintains records in an electronic format and, upon request, transfers records electronically by email or similar file transfer method. No physical copy is involved.
Interested in the fine print? Check out the Wisconsin Department of Revenue webpage, Hospitals and Medical Clinics: Do You Owe Wisconsin Sales Tax on Your Sales?
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