Washington sales and use tax law considers hospitals and health care facilities to be the consumers of the medical supplies and equipment used in providing medical services to patients. The Washington sales and use tax exemptions that apply to certain purchases do so based upon the use of the item in question.
Prescription drugs for human consumption are exempt from Washington sales and use tax. There is a three-pronged definition a substance must meet in order to be defined as a “drug” under Washington sales and use tax law.
First, it must be a substance that is listed in the official United States pharmacopoeia. Second, it must be intended for use during the diagnosis, cure, mitigation, treatment or prevention of disease. Third, the substance must affect the structure or function of the body. Read more