Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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460.0000 REIMBURSEMENT FOR SALES TAX—Regulation 1700

Annotation 460.0220

460.0220 Sales Tax Included—Medicare. If Medicare determined it was appropriate to include sales tax in the calculation of the basic fee of particular items, it would be appropriate to adjust for sales tax included. However, the Medicare basic fee schedule does not provide a guide for determining which sales Medicare has determined to be taxable and which exempt. The Board will not assume all reimbursement included tax reimbursement because the Medicare Carrier Manual indicates that a "reasonable charge" will include sales tax reimbursement only "where appropriate." Further, it provides sales tax reimbursement will not be a "reasonable charge" if not all providers in the area bill the tax reimbursement. Thus, it is necessary for the provider to maintain sufficient records to show on which items Medicare included tax in the reimbursement and the amount of tax included. 8/2/95.