Accountant says I can be charged a sales tax on materials and equipment, but not the frameworks, crowns, or flexible appliances that I outsource. These are considered non taxable services across the board and not state by state.
Professional fees charged by dentists, orthodontists, and dental laboratories are exempt from sales tax; however, some sales of tangible personal property made by these businesses are taxable. In addition, many goods purchased by dental supply companies, dental laboratories and dentists are subject to sales tax.
The following describes the taxability of sales and purchases made by dentists and dental related businesses.
Dental Supply Companies As the suppliers of dental materials and equipment to both dental laboratories and dentists, sales and purchases made by dental supply companies fall into several categories.
Taxable Sales Taxable sales include items sold to a dental laboratory or a dentist which will be used in the preparatory stages of building a set of dentures or dental work. Such taxable items include machines, instruments, drills, drill burrs, polishing material, wax, stone, pumice and molds.
Taxable Purchases Taxable purchases are purchases made by dental supply companies for their own use. This includes office equipment, fixtures and supplies, delivery equipment, sample and display cases, and office maintenance and cleaning supplies.
Tax Exempt Sales Tax exempt sales include those materials sold to dentists and dental laboratories which actually become part of the temporary or final dental work which is placed in the patient’s mouth. Examples of exempt items include acrylic base material for dentures, precious and non-precious metals, and teeth used in making a denture, bridge or inlay. Caps, filling material and braces are also items which become a part of or are considered final dental work and are exempt when sold to dentists and dental laboratories by dental supply companies. These are all items which in some way comprise the dentist’s end product.
Dental Laboratories Sales and purchases by a dental laboratory fall into categories similar to those of dental supply companies. Dental laboratory sales are almost exclusively sales of nontaxable service.
Taxable Purchases Taxable purchases by dental laboratories include all purchases for their own use. This includes office equipment, fixtures, and supplies; delivery equipment, samples and display cases; and office maintenance and cleaning supplies. 21921 Dental Supply Companies, Dental Laboratories & Dentists Guideline Page 2 Also taxable to dental laboratories are consumable items which are purchased from dental supply companies and used by dental laboratories to make preparatory models. This includes wax, stone, pumice, drills, drill burrs, laboratory equipment and any other items which are only considered an initial part of the total manufacturing process of artificial teeth. Tax Exempt Sales Tax exempt items include anything which is sold to a dentist and eventually becomes part of the temporary or final dental work placed in the patient’s mouth. This includes acrylic base material, precious and non-precious metals, and teeth used to make dentures, bridges, inlays, caps, filling material or braces.
