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Merlo
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Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Scenario Hospital A wants to sell some of their near expiration

Resolved Question:

Scenario:
Hospital A wants to sell some of their near expiration but not yet expired medical supplies to Hospital B.

Question:
Is This Prohibited?
Must Hospital B pay sales Tax?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Hello emos,

 

You have asked both a legal question and a tax question. The legal question regarding if the sale is prohibited would have to be addressed by our legal forum, so you may have to make a new post in that section.

 

If the sale is allowed, sales tax would not have to be charged, as long as Hospital B provides a copy of their sales tax exemption certificate to Hospital A, which I am certain they must have.

 

If this was helpful please press the Accept button.

 

Thank youCustomer/p>

 

 

Customer: replied 7 years ago.

does it matter if the purchasing hospital is not for profit or for profit.

does it matter if the purchasing hospital is in the sam e state or another state

sorry for not being complete originally

Regards

Customer/p>
Expert:  Merlo replied 7 years ago.

Hello againCustomer

 

It does not matter if the hospital if for profit or not for profit. If it is a non profit hospital, it should automatically have a sales tax exemption certificate. If it is a for profit hospital, it should still be exempt from paying sales tax on items that are not going to be resold.

 

If the hospital that will be buying the products is located in a different state than the hospital who is selling the products, then the selling hospital does not need to collect sales tax in any event. Sales tax would only apply to sales made in the same state or to any state where you had a physical presence. As an example, if Hospital A also ran a hospital that was in Hospital B's state, then they would collect sales tax if it were required. But if Hospital A has no physical presence in the other state, they are not required to collect sales tax.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank youCustomer/p>

 

 

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