006.05.06 Ark. Code R. 005-GR-38.3 - SALES BY OPHTHALMOLOGISTS, OPTOMETRISTS, OPTICIANS, AND EYEWEAR RETAILERS

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 As corrective eyeglasses requiring a prescription are withdrawn from stock and transferred to the patient in conjunction with the doctor's professional services, the doctor should self-assess and pay the sales or use tax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.

Notes

006.05.06 Ark. Code R. 005-GR-38.3