LR 8239
Taxability of Cosmetic Injections
May 26, 2023
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated March 10, 2023.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a medical spa that offers cosmetic injections. The cosmetic products are purchased from out of state and are injected by a registered nurse or nurse practitioner. The items include: Botox Cosmetic, Xeomin, Dysport, Sculptra Aesthetic, Restylane Fillers, Juvederm fillers, and RHA fillers.
ISSUE:
Are Applicant's out of state purchases of cosmetic products used in their injections subject to tax?
RESPONSE:
Yes. Applicant's out of state purchases of cosmetic products used in their injections are subject to sales or use tax pursuant to sections 144.020 and 144.610, RSMo.
Section 144.020.1, RSMo, provides "[a] tax is hereby levied and imposed ... upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state." Section 144.010.1(13), RSMo, defines "Sale at Retail" as "any transfer made by any person engaged in business as defined herein of the ownership of, or title to, tangible personal property to the purchaser, for use or consumption and not for resale in any form as tangible personal property, for a valuable consideration."
144.610, RSMo, provides:
A tax is imposed for the privilege of storing, using, or consuming within this state any article of tangible personal property, excluding motor vehicles, trailers, motorcycles, mopeds, motortricycles, boats, and outboard motors required to be titled under the laws of the state of Missouri and subject to tax under subdivision (9) of subsection 1 of section 144.020, purchased on or after the effective date of sections 144.600 to 144.745 in an amount equivalent to the percentage imposed on the sales price in the sales tax law in section 144.020.
The cosmetic products listed by Applicant and purchased out of state are used and consumed within the state of Missouri by Applicant's nurses when they are injected into their patients.
Because Applicant is the one consuming the products used, they are selling a non-taxable service, not the products themselves. Therefore, they should not charge sales tax on the sales to their patients, but should pay use tax on the purchases.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Legal Counsel J. Ross Shelton General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford