Ohio dental practices that received a request to sign and submit a blanket sales tax exemption certificate from Align Technologies, producer of the Invisalign dental product, are advised not to sign the certificate until the Ohio Department of Taxation clarifies the appropriate sales tax treatment of the product.
Align Technologies had sent the letter to dental practices but has put its exemption certificate request to dentists on hold. The company noted that it has not been collecting sales tax from dental practices because it believed all purchases by dentists were for resale, in which case, dental offices should be charging sales tax on the marked up price. However, Align’s discussions with the State of Ohio have led to a preliminary conclusion that the state considers some purchases as “retail sales” and others as “sale for resale.” The state has not yet made a final ruling on the treatment of these purchases.
Dental practices should continue to report use tax on their purchase of Invisalign products on their quarterly use tax returns. Doing so will protect the practice from incurring sales tax on the purchase price of the piece.
Once the State of Ohio has made a final ruling on tax treatment for Invisalign purchases, we will share details about the proper tax treatment and provide instructions on handling purchases of the product from Align Technologies.
Your accounting professional can answer more detailed questions about this issue.
Tags: Align Technologies, dental practice, Dentist, Invisalign, Ohio use tax, tax exemption certificate, Use Tax