S.C. Code Regs. 117-305.2 — Medical Institutions

Medical institutions, such as hospitals, infirmaries, and nursing homes, may sell or provide meals and
other foods in a variety of ways.
As part of the professional medical services provided, patients are furnished meals during their stay
at the institution.
Meals and other foods are also sold to employees, visitors and others in cafeterias, canteens, and
snack bars.
As with colleges and universities, medical institutions may contract with food service companies to
sell or furnish meals at the hospital, infirmary, etc., either as agents or on some other basis.
Meals and Other Food Served to Patients as part of Medical Care
1. Sales to a medical institution of unprepared food products, for use in furnishing meals and other
food to patients as part of their medical care, are retail sales subject to the sales tax or the use tax.
2. Sales to a food service company of unprepared food products, for use in furnishing meals and
other food to patients as part of their medical care, are retail sales subject to the sales tax or the use tax
if the food service company is the agent of the medical institution.
3. Sales by food service companies of meals to a medical institution, for use in furnishing meals and
other food to patients as part of their medical care, are retail sales subject to the sales or the use tax if
the food service company is merely under contract with the medical institution and is not the agent of
the medical institution.
For additional information concerning sales by, and purchases from, suppliers (including informa-
tion on resale certificates), see 117-305.3 and 117-305.4 below.
Meals and Other Food Served or Sold to Employees, Visitors and Others (Cafeterias, Canteens,
Snack Bars, Etc.)
1. Sales by a medical institution of meals and other foods, other than those furnished to patients as
part of their medical care, are retail sales subject to the sales or the use tax.
2. Sales of meals and other foods by a food service company as the agent of a medical institution,
other than those furnished to patients as part of their medical care, are retail sales of the medical
institution subject to the sales tax or the use tax.
3. Sales of meals and other foods by a food service company, other than those furnished to patients
as part of their medical care, are retail sales of the food service company subject to the sales or the use
tax.
For additional information concerning sales by, and purchases from, suppliers (including informa-
tion on resale certificates), see 117-305.3 and 117-305.4 below.