I am a doctor and provide telemedicine services to patients in other states from Hawaii as a 1099 independent contractor. Do I need to pay the 4% GET (General Excise Tax) in addition to income tax or is medical services provided to patients out of state exempt?
From what I see reading the HITAX pubs, they all lack clarity on this front. I would highly suggest you contact your local HI Taxation Dept. Office. There's four of them, one on each of the main Islands. E-mail would probably be the better way to go, so that any response you get you have it "in writing" to print and file with your business records, just in case. While you're at it, you may want them to cite the specific publication that backs up whatever their response may be.
OAHU DISTRICT OFFICE
Princess Ruth Keelikolani Building P.O. Box 259
830 Punchbowl Street Honolulu, HI 96809-0259
Honolulu, HI 96813-5094 Compliance Division
Taxpayer Services Branch Telephone: 808-587-1611
Telephone: 808-587-4242
Toll-Free: 1-800-222-3229 Office Audit Branch
Telephone: 808-587-1644
Telephone for the hearing impaired Fax: 808-587-1633
Telephone: 808-587-1418
Toll-Free: 1-800-887-8974 Collections Branch
Telephone: 808-587-1600
Fax: 808-587-1488 Fax: 808-587-1720
MAUI DISTRICT OFFICE
State Office Building Molokai
54 S. High Street, #208 35 Ala Malama Street, Room 101
Wailuku, HI 96793-2198 Kaunakakai, Hl 96748
Telephone: 808-984-8500 Telephone: 808-553-5541
Fax: 808-984-8522 Fax: 808-553-9878
HAWAII DISTRICT OFFICE
State Office Building State Office Building
75 Aupuni Street, #101 82-6130 Mamalahoa Hwy., #8
Hilo, HI 96720-4245 Captain Cook, HI 96704
Telephone: 808-974-6321 Telephone: 808-323-4597
Fax: 808-974-6300 Fax: 808-323-4599
Email: Tax.Hilo.Office@hawaii.gov
KAUAI DISTRICT OFFICE
State Office Building Telephone: 808-274-3456
3060 Eiwa Street, #105 Fax: 808-274-3461
Lihue, HI 96766-1889
Email: Tax.Kauai.Office@hawaii.gov
Aloha! I wonder if you found your answer. I just got my 1099 and I did telehealth during COVID early last year. How did you file for GET or is it exempt? Mahalo
I am afraid that the Hawaiian taxing authorities covered their bases on this pretty early.
Hawaii is still the only state that taxes medical services with some very narrow exceptions. Since telehealth was not exempted from the GET by Hawaiian law it is subject to it. Remote workers physically present in Hawaii and all residents of Hawaii are subject to the GET on services provided from Hawaii until specifically exempted.
So go ahead and send in the 4%.
Sorry, @OahuRN