Navigating Sales Tax in the Life Science Industry: Challenges and Solutions

This article was originally published in the Journal of State Taxation.

The U.S. stands at the forefront of the life sciences industry, which is synonymous with innovation and technological breakthroughs. However, navigating the complexities of regulatory frameworks is crucial, particularly in understanding and complying with U.S. taxes, including state and local taxes.

Because of the need to purchase goods for facility build-out, equipment, and testing inventory, sales tax could be the largest spend for companies. Navigating sales tax compliance in the life science industry requires a strategic approach, leveraging technology, expertise, and best practices. This article delves into the sales tax challenges faced by life science companies and explore potential solutions to streamline compliance processes.