- Sales tax on vitamins and supplements varies by state due to different classifications.
- Some states classify them as food, others as medicine, and some as taxable over-the-counter goods.
- Compliance is challenging due to changing state regulations and varying exemptions.
- Automation can help streamline compliance processes for sellers.
- Examples of state differences include California taxing most supplements, while Texas exempts those with a “Supplement Facts” label.
- New York taxes non-prescription supplements, while Michigan and New Jersey broadly exempt them as food.
- State classification depends on labeling, with “Nutrition Facts” treated as food and “Supplement Facts” as dietary supplements.
- Regularly checking state exemption lists and definitions is crucial for compliance.
Source: trykintsugi.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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