Georgia Sales Tax Audit Pharmacy
Just like any other business, pharmacies in Georgia are subject to collecting sales tax on their sales, unless an exemption is met.
Let’s do a little policy and history lesson on sales tax collection. Sales tax collection is always mandatory on sales made inside of the state. Since the passing of the law in South Dakota v. Wayfair, sales tax collection laws have now been expanded to include out-of-state sales.
Prescription drugs: These are non-taxable in the state of Georgia. However, do not confuse this with the additional devices and or drugs that are a part of the sale. For instance, although insulin is not subject to sales tax, the monitor is a separate device that will be subject to sales tax.
When a pharmacy is audited for sales tax, the auditors are looking for things that do not meet the exception requirements. Many pharmacies are left with a large notice of tax liability when it comes to light that they have not been collecting the appropriate amount of sales tax on the aggregate purchases made by their customers.