Medical Products With Single Use Label Exempt from Sales Tax in Florida

A Florida business that reprocesses, repairs, and refurbishes medical devices and equipment and sells them with a label indicating that the products are refurbished and intended for single use is exempt from Florida sales and use tax on sales of the products. The applicable regulation states that medical products, supplies, or devices sold to hospitals, healthcare entities, and licensed practitioners are exempt when they are dispensed under federal or state law only by the prescription or order of a licensed practitioner and are intended for use on a single patient and not intended to be reusable. The business is required to maintain records evidencing that each product bears the label, “Caution: Federal Law restricts this device for sale by or on the order of a physician…Reprocessed device for single use.” (Technical Assistance Advisement, No. 10A-046, Florida Department of Revenue, November 5, 2010, released January 2011)

Posted on April 19, 2011