New York—Sales and Use Tax: Collagen Wound Dressings and Membranes Exempt as Products Consumed for Preservation of Human Health

NEW YORK – The sales of collagen wound dressings and membranes intended for use during dental surgery were not exempt from New York sales tax as a prosthetic aid because they did not completely or partially replace a missing body part or replace the function of a permanently inoperative or permanently malfunctioning body part. However, the collagen wound dressing and membranes qualified for the exemption under “products consumed by humans for the preservation of health”. Specifically, collagen wound dressings and membranes are exempt from tax to the extent that they are left in situs during dental surgery to be absorbed by the human body during the healing/tissue regeneration process. However, sales of collagen wound dressings or collagen membranes for temporary use prior to surgical closure would be taxable supplies when purchased for performing medical and similar services for compensation. TSB-A-20(23)S, New York Commissioner of Taxation and Finance, June 30, 2020, released November 2020

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