Disposable devices used to deliver drugs

Single-use items used to deliver prescribed drugs for human use, such as syringes, IV tubing and catheters, are exempt from Washington sales and use tax. The holder is not exempt: IV stands and other reusable equipment that support the delivery stay taxable.

Who qualifies

• Any buyer of these devices for delivering drugs for human use under a prescription. When a health care provider buys them, it uses form REV 27 0055, which is limited to practitioners licensed to prescribe, such as hospitals, medical clinics and physicians.
• WAC example: a nursing home buying syringes and drug-delivery tubing with the health care provider certificate.

What qualifies

• "Disposable devices used to deliver drugs": single-use items such as syringes, tubing or catheters (RCW 82.08.935).
• The WAC names single-use syringes, intravenous (IV) tubing and IV catheters.
• The drugs delivered must be for human use and given under a prescription.
• The matching use tax exemption is RCW 82.12.935.

Not covered

• Stands or devices that hold the tubing or catheter. The WAC says IV stands are durable medical equipment and taxable.
• Reusable delivery equipment.
• Devices for animal use, or for drugs not given under a prescription.
• Supplies bought mainly for taxable uses, such as tubing that will mostly go to the laboratory (see the principal use rule below).

What the buyer gives

Form REV 27 0055, Sales Tax Exemption Certificate for Health Care Providers (revision 7/23/24), line 2, "Disposable devices used to deliver drugs," with a description of the items. The buyer ticks single use or blanket (valid while buyer and seller have at least one sale within 12 months), names the seller and the date, ticks the line for the exemption, and completes the signature block: type of entity, name of buyer, name of business, Account ID if any, signature, date, mailing address, title and phone. Only practitioners who can legally prescribe under Washington law may use the form; the form names chiropractors, East Asian medicine practitioners and massage practitioners as unable to use it.

What the seller keeps

Form REV 27 0055 says the seller or marketplace facilitator "must retain the original of this certificate for their records" and not send a copy to the Department of Revenue. WAC 458-20-18801(304): sellers to medical practitioners, nursing homes and hospitals must obtain an approved exemption form, capture the streamlined sales tax data elements, or otherwise meet RCW 82.08.050(7) for any exempt sale. Charge tax on anything on the same order that is not a single-use delivery device, such as IV stands. RCW 82.32.070(1) requires taxpayers to "keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of any tax for which the taxpayer may be liable." Under RCW 82.08.050(4) a seller is not relieved of the tax unless it keeps proper records of exempt sales and provides them when the department asks; (7)(a) relieves a seller that obtains a fully completed certificate within 90 days after the sale, and (7)(b) allows 120 days after a department request to prove the sale was not taxable or obtain a fully completed certificate taken in good faith.

Common mistakes

• Putting IV poles and stands on the exempt line. They are durable medical equipment.
• Not describing the items. Line 2 asks the buyer to describe what is bought.
• Ignoring later taxable use. If tubing bought exempt is later used in the lab, the buyer owes deferred sales or use tax for that use (WAC 458-20-18801(303)(a)).

Common questions

Are IV bags and stands exempt from sales tax in Washington?

IV tubing and catheters used to deliver prescribed drugs are exempt. The stand that holds the IV container is durable medical equipment and is taxable.

Our tubing is used both for drug delivery and in the lab. How do we buy it?

Under WAC 458-20-18801(303), give the seller the completed form if you expect the main use (more than 50 percent) to be exempt, then report deferred sales tax on units used in the lab. If you expect the main use to be taxable, pay tax at purchase and take a tax-paid-at-source deduction for units put to exempt use.

Sources

• RCW 82.08.935 Whole section
• RCW 82.12.935 Use tax
• WAC 458-20-18801 (303)(a)-(c) Examples 6-7; (304); (403)(c) Example 8
• DOR form REV 27 0055 (7/23/24), Sales Tax Exemption Certificate for Health Care Providers Line 2; page 3 instructions, line 2
• RCW 82.08.050 (4), (7)(a)-(c) seller records and certificate timing
• RCW 82.32.070 (1) five-year record retention