DEPARTMENT OF TAXES Vermont Sales Tax for Dental Supplies and Equipment Businesses need to know in what situations Vermont Sales and Use Tax applies to them. This fact sheet is designed to provide a general overview of sales tax for dentists in Vermont. For more detailed information on each of the topics presented here, you may refer to the Vermont Department of Taxes website. Durable Medical Equipment Dental Supplies Dental equipment that has the following characteristics is exempt from sales tax as “durable medical equipment:” The sales of certain medical supplies are also exempt from the sales tax. To qualify for the medical supply exemption, the supply must be used in treatment intended to alleviate human suffering or to correct human physical disabilities and must: • Can withstand repeated use • Is primarily and customarily used to serve a medical purpose • Generally is not useful to a person in the absence of illness or injury • Is not worn on or in the body Examples of equipment that meets the durable medical definition are: • • • • X-ray machines Dental chairs Hand held or medical dental tools Handpieces that hold burs, diamonds, finishing discs or similar items used in making or finishing fillings, crowns, bridges, dentures, or like dental treatment • Rotary cutting carbides used in making of crowns, bridges, dentures, or like dental treatment • Sterilizing baths, autoclaves, and ultrasonic baths Examples of equipment and property that do not meet the durable medical equipment definition are: • Waiting room furniture • Office equipment and software for secretarial and accounting functions (including record keeping) • Equipment used in the dental exam and treatment room serving a general purpose (nontask lighting, cabinets and trays holding tools and equipment) • Be therapeutic in nature; • Not be used by persons absent illness or injury; and • Not be capable of repeated use. Examples of exempt dental supplies are: • Topical anesthetics and injectable anesthetics • Prophylactic paste used to clean teeth, crowns, bridges, dentures, etc. • Disposable air/water syringe tips used to spray air or water into the patient’s mouth • Dental dam material • Bandages and surgical dressings, including gauze • Matrix strips and bands placed between teeth to isolate the tooth being treated • Gypsum used to make models of patient’s teeth for crowns, bridges, dentures, or like dental treatment • Sealants applied to teeth as protection against cavities • Polishing and finishing strips and discs used to polish and finish different types of composite material placed on patient’s teeth Disclaimer: This fact sheet is intended to provide an overview only. Vermont tax statutes, regulations, Vermont Department of Taxes rulings, or court decisions supersede information provided in this fact sheet. Iss. 01/06/2014 • Exp. 12/31/2014 • Pub. FS-1034 Please see reverse for additional information. Examples of exempt dental supplies, continued: • Disposable infection control barriers are plastic shields covering items touched by dentist during treatment • X-ray film and X-ray developing solutions used to take pictures of patient’s mouth and used in diagnosis and treatment • Impression material used to make impressions of patient’s mouth for use in dental treatment • Sutures used to close incisions during dental treatment • Hypodermic needles used to administer anesthetics or other medicine during treatment • Cotton tipped applicators used to apply topical anesthetics to patient’s gums • Tray covers that line trays used to hold dental equipment and keep dental equipment clean and sterile • Plastic face shields to protect the patient’s face and eyes during dental treatment • Sterilizing solutions used to disinfect impression material after being in patient’s mouth and to disinfect other dental equipment • Ultrasonic solutions used to soften and loosen particles off dental instruments • Evacuation system cleaner used to clean and clear tube lines for evacuator and saliva ejector or air/water syringe systems • Latex gloves used to protect both patient and dentist from infection or contamination • Night guard material used to protect a patient’s teeth from wear and damage from grinding (as part of a dental treatment plan) • Items provided by a dentist or hygienist of nominal value, including: toothpaste, toothbrushes, and dental floss Please note: Dental practices may buy these nominal items tax free if the dentist or hygienist provides the products to patients for free. You must furnish an exemption certificate, Form S-3T, to the seller. The exemption certificate can only be used for the limited purpose described. Examples of supplies that are not exempt: • Cleaning supplies (except those cleaning supplies necessary to maintain sterile equipment) • Patient towels used to protect the patient’s clothing during treatment • Tooth whitening trays to be used at home by the patient Prosthetic Devices Prosthetic devices are also exempt from Vermont Sales Tax. To be considered a prosthetic device, the item must be: • A replacement, corrective, or supporting device • Worn on or in the body to: a. Replace a missing portion of the body, b. Prevent or correct a physical deformity or malfunction, or c. Support a weak or deformed part of the body. Examples of exempt prosthetic dental devices are: • Dentures • Orthodontic appliances For More Information If you have other questions regarding the Vermont Sales and Use Tax, visit our website at tax.vermont. gov or contact the Business Tax section at (802) 8282551, option 3.
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