This article should not be relied upon based on the Tennessee Court of Appeals ruling in Eisai, Inc. v. Gerregano, 2023 WL 2193450 (Tenn. Ct. App. 2023). Please see Chapter 5 of the Department’s Business Tax Manual for a full discussion of this case.
Sales of tangible personal property to doctors and hospitals are subject to business tax. Sales to not-for-profit hospitals are wholesale sales, but sales to for-profit hospitals are retail sales. Sales to doctors who use or insert items during the performance of their services are retail sales.
Reference: Tenn. Comp. R. & Regs. 1320-04-05-.20.
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