Proposed Free Flu Vaccines Would Be Exempt in Utah.

Free flu vaccines that a pharmacy plans to offer to uninsured individuals would be exempt from Utah sales and use tax because the vaccines are for human use and are purchased by a medical facility. An exemption exists for amounts paid for certain drugs and syringes if the item is intended for human use; and a prescription was issued for the item or the item was purchased by a hospital or other medical facility. In this case, prescriptions would not be required to receive the promotional flu vaccine. The Utah Tax Commission determined that the taxpayer, a pharmacy located inside a retail store, would be functioning as a medical facility while it administered the vaccines under the assumption that the vaccines would be administered by qualified, state-licensed health care professionals. (Private Letter Ruling, Opinion No. 09-020, Utah State Tax Commission, January 28, 2010, released August 2010).

Posted on November 14, 2010