Healthcare and Sales & Use Taxes

Huge sales and use tax refunds exist in the Healthcare Industry.  Why?  Because the taxability of medical products represents one of the single most difficult sales and use tax compliance areas, especially in California.  The State of California’s aggressive audits of medical vendors, years of inconsistent policies and changing administration, coupled with increased complexity of medical products and advances in technology have all contributed to greater and greater compliance challenges. 

Downey, Smith & Fier can help, whether you are:

  • Looking for recovery opportunities,
  • Defending yourself or your company against an audit challenge,
  • Establishing product taxability,
  • Looking to maximize claimed exemptions, or  
  • Deciding whether to reimburse a vendor for tax billed.

Sales and use taxes, when applicable, adds between 7% and 10.5% to the gross cost of medical products or supplies.  When an exemption or exclusion is identified or sustained, the savings directly impact your company’s bottom line and reduce costs prospectively.  Sales and use taxes when paid in error may be recovered, generally within three years of the payment of such taxes. 

DSF Healthcare Services:

  • Tax Recovery Audit (Reverse Audit)
  • Sales Tax Audit Support
  • Product Taxability and Support