BUS-66 - Sales of Tangible Personal Property to Doctors and Hospitals

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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