Current through Register Vol. 49, No. 9, September, 2024
A.
DEFINITIONS.
1. "Doctor" means an
ophthalmologist or optometrist.
2.
"Eyewear retailer" means a business enterprise engaged primarily in the retail
sale of eyewear and eyewear related products. Examples of an eyewear retailer
include a discount store's in-house optical shop or vision center and national
chain store vision centers. An eyewear retailer may (and often does) offer the
services of one or more optometrists.
3. "Independent optician" means a
self-employed optician engaged in the business of selling and servicing eyewear
and eyewear related products.
4.
"Corrective eyeglasses" means eyewear this is designed to improve or protect
the patient's vision. Corrective eyeglasses normally consist of eyeglass
lenses, complete eyeglasses, or contact lenses.
5. "Prescription" means an order, formula, or
recipe issued in any form of oral, written, electronic or other means of
transmission by a duly licensed practitioner authorized by the laws of
Arkansas.
B. SALES BY
OPHTHALMOLOGISTS AND OPTOMETRISTS. Doctors are deemed to be the consumers or
users of corrective eyeglasses requiring a prescription that are used or
consumed by them in the rendition of nontaxable professional medical services.
Corrective eyeglasses requiring a prescription are not taxable when sold by the
doctor. The sale of tangible personal property other than corrective eyeglasses
requiring a prescription by doctors to their patients is subject to sales tax.
1. Doctors should purchase corrective
eyeglasses and other products that are sold or otherwise transferred to their
patients as follows:
a. The doctor may
purchase tangible personal property exempt from sales or use tax as a sale for
resale. (See GR-53.) At the time any item other than corrective eyeglasses
requiring a prescription is sold, the doctor must collect sales tax from the
patient based upon the sales price of the property to the patient. As
corrective eyeglasses requiring a prescription are withdrawn from stock and
transferred to the patient in conjunction with the doctor's professional
services, the doctor should self-assess and pay the sales or use tax based upon
the purchase price of the materials.
b. Alternatively, if the doctor makes no
sales of items other than corrective eyeglasses requiring a prescription, sales
or use tax on the materials used in producing corrective eyeglasses requiring a
prescription may be paid to the vendor at the time of purchase. The doctor is
responsible for remitting use tax on purchases from unregistered
vendors.
2. Sales by
Doctors to Nonpatients. When a doctor merely fills another doctor's
prescription for corrective eyeglasses, such sales are not considered to be
part of the doctor's nontaxable professional medical services. Rather, these
sales are considered to be retail sales of tangible personal property upon
which the doctor must collect sales tax from the customer.
C. SALES BY INDEPENDENT OPTICIANS. The sale
of tangible personal property, including corrective eyeglasses requiring a
prescription, by an independent optician is subject to sales tax as the
optician is primarily engaged in the sale of tangible personal property rather
than the rendition of professional medical services. Opticians should purchase
all tangible personal property tax-exempt as sales for resale. (See GR-53.)
Sales tax should be collected from the optician's customers at the time of
sale.
D. SALES BY EYEWEAR
RETAILERS. The sale of tangible personal property, including corrective
eyeglasses requiring a prescription, by any eyewear retailer is subject to
sales tax. Eyewear retailers should purchase all tangible personal property
that is for resale tax-exempt as sales for resale. (See GR-53.) Sales tax
should be collected from the retailer's customers at the time of
sale.
E. Corrective eyeglasses and
contact lenses are not considered to be prosthetic devices and therefore may
not be sold to consumers tax-exempt pursuant to Ark. Code Ann. §
26-52-433
and GR-38.2.
