Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 2.2 - SALES AND USE TAX
Rule 5 - Exempt Transactions of a Retail Merchant
Section 5-33 - Prescription drugs; sales

Universal Citation: 45 IN Admin Code 5-33

Current through September 18, 2024

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 33.

(a) The state gross retail tax shall not apply to the sales of drugs dispensed by a registered pharmacist upon the order of a practitioner licensed to prescribe, dispense, and administer drugs to human beings or animals in the course of his professional practice.

(b) In general, all sales of tangible personal property by a retail merchant including pharmacists, hospitals, and drug stores are taxable. This exemption applies only to sales of certain drugs.

(c) General rule: Sales of drugs are exempt from tax provided:

(1) The drug is dispensed by a licensed pharmacist; and

(2) The drug is prescribed by a practitioner who is licensed to prescribe, dispense and administer drugs for human beings and animals; or

(3) The drug is sold by a practitioner licensed to prescribe, dispense and administer drugs to human beings.

(d) Sales by a retail merchant (pharmacy, hospital, etc.) for human use or consumption of aspirin, common cold pills, ordinary cough medicine and other drugs which are purchased without prescriptions are not exempt under this regulation [45 IAC 2.2].

(e) Sales of drugs prescribed by a veterinarian or other practitioner not licensed to prescribe drugs for human use are not exempt under this regulation [45 IAC 2.2].

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