Wisconsin: New Sales Tax Policy for Hospitals
- Nov 13, 2015 | Gail Cole
The Wisconsin Department of Revenue has updated information regarding the application of tax to sales made by hospitals and medical clinics in Wisconsin.
Most medical services are exempt from Wisconsin sales tax. However, medical clinics and hospitals sell other goods and services that may be subject to tax. For example, sales, leases or rentals of tangible personal property are taxable when made by medical clinic or an auxiliary business, such as a hospital gift shop.
Examples of taxable sales include the following:
- Certain digital goods
- Medical alarm monitoring devices
- Medical equipment, fixed assets and supplies
- Soft drinks
In addition, tax must be collected on sales of taxable products or services to other business entities, unless the buyer provides a valid exemption certificate for the transaction. Additional information.
Sales of paper copies of patient health care records were subject to sales tax until an August 15, 2015, decision by the Wisconsin Tax Appeals Condition. As a result of the decision, sales of paper copies of medical records are exempt. This is a change from the previous policy.
Electronic copies of patient health care records (medical records) that are transmitted electronically remain exempt from sales tax.
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