Taxes for Durable Medical Equipment?

January 2, 2008

Am I suppose to be charging and paying taxes on DME?

Wrist splints, ace bandages, etc?

Where is the line for taxes on a shot of Rocephin in the office versus selling vitamins and OTC stuff in the office -- does it make a difference in regards to state and local taxes?

I'm sure this may vary from state to state, but what experience have others had?

Locke, MD

January 2, 2008

In Pennsylvania, sales tax is paid on everything, unless it is exempt.

Food and toilet paper are exempt, for example.

As are many medical supplies.

Some DME is not exempt of course, but probably most is.

I depend upon the supplier I buy from to not charge me sales tax.

Since they are a Pennsylvania based supplier, they know the law

exactly.

If I want to buy and re-sell, you get an exemption ID number.

And start filling out quarterly tax forms, and start collecting

and submitting sales tax from your patients.

Yuck!

When we start selling protein drinks, fat-pills, and bo-tox

self injection kits, we will get a number.

J

Side note, as to where the real money is:

Have a family doctor friend in Florida.

Runs a weight loss clinic.

All cash business. No insurance.

They sell protein drinks, have their own brand of weight loss

meals, etc.

They sell $100,000 in product a month. Not including what

their patients pay for appointments.

Lesson learned? Move to a city filled with rich old

people, and set up bariatric medicine clinic.

Would you rather have a high-school graduate nutritionist tell

you have to lose weight?

Or be supervised by a primary care physician?

-tom

PVMED

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