Sales Tax Articles
Sales Tax State Activity Update - March 2005
Automated External Defibrillator Taxability in Virginia is Clear!
The Virginia Department of Taxation issued a ruling on the taxability of automated external defibrillators (AEDs). These medical devices provide life saving treatment to individuals undergoing cardiac arrest.
Code of Virginia ยง58.1-609.10, in pertinent part, provides an exemption for prosthetic devices "when such items or parts are purchased by or on behalf of an individual for use by such individual." Prosthetic devices, according to Title 23 Virginia Administrative Code 10-210-940, act to replace a missing part or function of the body.
The AEDs in question are similar in function to a cardiac pacemaker. In a previous Ruling of the Tax Commissioner, cardiac pacemakers, which are designed to regulate the heartbeat, were given exempt status because they perform a function of the body. Therefore, the Tax Commissioner has concluded that the AED qualifies as a prosthetic device that is exempt from sales and use tax when purchased by or on behalf of an individual for use by such individual. However, AEDs that are purchased in bulk by health care practitioners or profit hospitals, and AEDs purchased by any other entity that are for use by multiple, non-specific individuals would not qualify for the exemption.
You can view the full ruling here.
(Ruling of the Tax Commissioner, PD 05-4, Virginia Department of Taxation, 02/01/05)
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