Private Letter Ruling
Kansas Retailers' Sales Tax
Contracts with out-of-state company to prepare medical billings for patient treatment.
Office of Policy & Research
July 7, 2005
Re: Private Letter Ruling Request
You indicate that XXXX contracts with an out-of-state company to prepare its medical billings for patient treatment. The out-of-state company prepares these billings electronically and submits them electronically to the appropriate insurance companies. No paper invoices are generated. The out-of-state company then bills XXXX for this service. You ask whether the charges for this service are subject to Kansas sales or use tax.
Please be advised that the service you have described above (which does not involve the production of any paper invoice) is not subject to Kansas sales or use tax.
This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.
If you have additional questions, please let me know.
Very truly yours,
Richard L. Cram
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