California Sales Tax for Veterinarians - Professional Services

Charges for your services are not subject to sales tax.


In defining retail sales by veterinarians, CDTFA looks at the relationship between the products you sell and the services you provide.

As you can see on the preceding table, providing a product to a customer without professional services is generally considered a taxable retail sale.

Yet, when the same product is provided with professional services, you may be considered the consumer of the product.

Therefore, it is important that you understand how CDTFA defines professional services.

Professional services are considered to include activities such as:

Diagnosis, including examinations, X-rays, tests, and so forth.

Treatment

Surgery

Administration of drugs

Example

Based on your examination of a parrot and subsequent tests, you determine that the bird has a respiratory infection. You provide your client with a liquid antibiotic for the parrot, an action directly related to specific professional services—in this case, your examination, tests, and diagnosis. As shown earlier in the table, when you provide a drug or medicine with professional services, you are considered the consumer of the drug, and the transaction is not a retail sale.

Source: California Department of Tax & Fee Administration (CDTFA)

Course: https://salestaxsolutions2000.com/california-sales-tax-veterinarians


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