Medical services are not necessarily taxable. In the case of medical billing, you need to determine if the service is being used by your business or for personal reasons. If it is for personal use and not related to your business, then you do not have to pay taxes on it. However, if it is related to your business, then it can be taxed.
Medical billing services are often a part of an overall medical practice. If you provide these services as part of your practice, then they can be taxed. However, if they are not connected to your practice and are just something that you offer through a separate company, then they are not subject to tax laws.
MEDICAL BILLING SERVICES ARE TAXABLE EFFECTIVE OCTOBER 1, 2021
Effective October 1, 2021, medical billing services, including those performed prior to submitting a claim to an insurance company, to provide additional information, or to adjust a submitted billing, are now considered taxable insurance services for sales and use tax purposes in Texas