VSP sales tax

[jlbado]

Hi, everyone! I have been a reader of the boards for awhile now, but this is my first post... I am a little confused regarding the way that VSP has stated we must charge sales tax. They have said that we must charge the patient the full retail amount of sales tax. But, this just doesn't seem right to me...Can you tell me how you all are doing it? Thanks!!!

[Java99]

I'd follow your state law on this one.

[Paul Smith LDO]

I'd follow your state law on this one.

+1 If the state you reside in does not have a sales tax or if they do not tax medical devices, follow state law.

[jlbado]

+1 If the state you reside in does not have a sales tax or if they do not tax medical devices, follow state law.

I am in Louisiana and we do charge state tax but...Should I be taxing the patient just for their out of pocket costs or on the full retail amount?

[Bondeye]

We are in Louisiana also. It seems that the tax regulations may vary parish to parish... when I worked in EBR parish we did not have to collect sales tax, but in Livingston we do. We are required to collect on the full retail amount less any applicable discounts, but it is just the local sales tax that is collected, not the state part (in Livingston sales tax is 9.5% of which 5.5% is local tax and 4% is state). You'll need to check with the tax authority in your area.

[Java99]

I am in Louisiana and we do charge state tax but...Should I be taxing the patient just for their out of pocket costs or on the full retail amount?

I would think tax on full value, prior to any discounting, as insurance is a discount, but call your tax office. They are the only ones who can answer this definitively.