Sales Tax State Activity Update - April 2005

Massachusetts Rules on Vacuum Assisted Closure Therapy Devices

The Massachusetts Department of Revenue has issued a Letter Ruling to communicate the taxability of Vacuum Assisted Closure (VAC) therapy systems.

The therapy uses localized negative pressure, or suction, to promote wound healing, and serves to prevent infection from outside bacteria during the healing process.

The system consists of a mechanical device, sterile plastic tubing and a canister for drainage collection, foam dressing and a transparent drape dressing. First, the foam dressing is applied to the wound. Then one end of the tube connects to the foam, and the other end to the canister. The canister is then hooked up to the VAC system. When the machine is started, the foam dressing shrinks and the system pulls out infected materials and other fluids from the wound through the tube to the canister thus closing the wound.

Massachusetts G.L. ch. 64H § 6(1), in pertinent part, provides an exemption for equipment worn as a correction or substitute for any nonfunctioning portion of the body. The Commissioner of Revenue has concluded that the entire therapy system acts as a correction or substitute for the skin during the wound healing process. As the skin is considered a "functioning portion of the body", the VAC system is therefore exempt according to the above statutory language.

View the ruling here.

(Letter Ruling 05-01, Massachusetts Department of Revenue, 03/08/2005 )

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