Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 210. Retail Sales and Use Tax
2/25/2021

23VAC10-210-720. Hospitals and nursing homes.

A. Hospitals and nursing homes conducted for profit. A hospital or nursing home is primarily engaged in the business of selling services and is a user or consumer of all tangible personal property purchased for use or consumption in connection with its operations. Each is required to pay the tax to its vendor at the time of purchase.

B. Hospitals and licensed nursing homes conducted not for profit. The tax does not apply to sales of tangible personal property to such hospitals or licensed nursing homes, for use or consumption by them, and paid for out of their own funds.

C. Hospitals and nursing homes (conducted for profit and not for profit.) When any hospital or nursing home, through any division or department, engages in selling tangible personal property, it must register as a dealer and collect and pay the tax.

For sales of medicines, drugs and certain other enumerated items of tangible personal property sold on prescriptions of licensed physicians or dentists, 23VAC10-210-940.

D. Clinics. Unless a clinic is an integral part of a hospital conducted not for profit or is itself licensed as a hospital under the provisions of § 32.1-123 of the Code of Virginia and conducted not for profit, sales to such a clinic are taxable.

E. Hospital cooperatives and hospital corporation conducted not for profit. The tax does not apply to sales of tangible personal property to hospital cooperatives or hospital corporations conducted not for profit when organized and operated for the sole purpose of providing services exclusively to hospitals conducted not for profit.

F. Homes for adults conducted not for profit. Effective July 1, 1980, the tax does not apply to sales of tangible personal property to homes for adults as defined by § 63.1-172 of the Code of Virginia conducted not for profit. The tax applies to sales of tangible personal property to all other homes for adults whether conducted for profit or not.

Statutory Authority

§§ 58.1-203, 58.1-609.7(4), 58.1-609.7(12) and 58.1-609.8(10) of the Code of Virginia.

Historical Notes

Derived from VR630-10-47; revised July 1, 1979; January 1, 1979; amended, eff. March 1983.

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