Prescriptions

Sections 63-3612, 63-3613, 63-3622, 63-3622N, Idaho Code 01. Documenting Exempt Sales. The seller keeps the written prescription or work order on file to document an individual’s exemption. Sales made without a prescription or work order are taxable. The seller needs to be able to identify sales which are exempt under prescription from sales which are taxable. (7-1-26) a. Refills of prescriptions on file with a seller aren’t taxable. (7-1-26) b. Some drugs may be lawfully sold without a prescription. When sold over the counter without a prescription, the drugs are subject to sales tax. When sold under a prescription, the drugs aren’t taxable. (7-1-26) 02. Purchases by Practitioners. A practitioner, who is licensed under Title 54, Idaho Code, to administer or distribute a medical product listed in Section 63-3622N, Idaho Code, may purchase the item exempt from tax. Only the medical items named in Section 63-3622N, Idaho Code, which the practitioner is licensed to administer or distribute qualify for this exemption. (7-1-26) 03. Purchases by Nursing Homes and For-Profit Hospitals. The Sales Tax Act doesn’t provide a general exemption from tax for purchases made by nursing homes and similar facilities or by hospitals operated for profit. As a result, they pay tax on all purchases, unless those items are exempted by Section 63-3622N, Idaho Code. (7-1-26) 04. Examples. Available at Sales and Use Tax Rules Examples. (7-1-26)