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My store primarily sells medical and healthcare items, but is not a drug store. Is 90% Rule Merchant registration limited to drug stores and pharmacies?

April 26, 2017drug store Healthcare items medical merchant primarily rule sells store

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My store primarily sells medical and healthcare items, but is not a drug store. Is 90% Rule Merchant registration limited to drug stores and pharmacies?

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Yes. The IRS is clear that 90% Rule registration is only permitted to drug stores and pharmacies. Merchants that sell medical/healthcare items or provide medical/healthcare services use a merchant category code (5912 and 5122) that identifies them as a healthcare merchant.