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Sales Tax and your RepeatMD app: What You Need to Know & How to Set Up

This guide explains how sales tax is determined and what actions your team needs to take to stay compliant.

Updated this week

Overview

RepeatMD makes sales tax compliance straightforward for your practice, whether you're offering treatments or packages. Our platform partners with Avalara to ensure accurate tax calculation based on your services and your patients' location.


How Sales Tax Works in RepeatMD

  • Sales Tax only applies to in-app purchases: Sales tax is calculated only on treatments and packages purchased directly through the RepeatMD app.
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  • Review item settings carefully: Proper tax classification starts with selecting the right attributes for each item.
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  • You don't need to file anything: RepeatMD automatically handles collection and remittance.


Setting Up Sales Tax in the Admin Panel

To ensure proper tax handling, you must assign tax attributes to each treatment or package you sell. The attributes are:

  • Requires a Medical License to Administer

  • Is Prescription Drug

  • Always Tax-Exempt

  • Always Taxable

  • Decide For Me

You'll find these settings when creating or editing a treatment or package in your App Builder.

Pro Tip: Use these checkboxes to reflect how the service is classified from a medical or compliance standpoint.


RepeatMD Assigns a Tax Code Automatically

Our system assigns an official tax code based on the attributes you select.

These codes determine how tax is applied based on how the service is classified and your practice's location.


Transaction Sent to Avalara

When a patient purchases a treatment or package through the app, our system sends Avalara the following information:

  • The item's assigned tax code

  • Your practice location

  • The patient's location

Learn more about Avalara: How Avalara works


How Avalara Determines Sales Tax

Avalara evaluates this information to determine whether tax applies.

It considers:

  • State-specific marketplace facilitator laws

  • Economic nexus thresholds (based on your sales volume in that state)

  • The assigned tax code from the item setup

If tax is required, Avalara calculates the correct rate based on location and classification.


Tax is Applied at Checkout

If the treatment or package is taxable, the correct tax amount is displayed to the patient at checkout.

RepeatMD collects and sends sales tax for in-app purchases, keeping your practice compliant with no extra work.


FAQs

Do I need to do anything after setting the tax attributes?

Nope! Once you've selected the correct attributes, RepeatMD takes care of the rest.

What if I'm unsure how to classify a treatment or package?

Reach out to your compliance team or contact RepeatMD Support for help.

Is tax calculated differently depending on location?

Yes. Avalara calculates tax based on your practice's location, following the latest state and local laws.


Next Steps & Support

Ensure all treatments and packages in your Admin Dashboard have the correct tax attributes selected.

Still have questions? Email us at support@repeatmd.com

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