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Wisconsin: When Sales Tax Applies to Hospitals and Medical Clinics


 Sometimes hospitals have to collect and remit sales tax.

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.

Taxable

  • 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.”

Exempt

  • 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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photo credit: Leo Reynolds via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.