California Sales Tax for Veterinarians - Drugs & Medicines

You are generally considered the consumer of drugs and medicines you furnish with related professional services.


However, when you do not provide related professional services, furnishing drugs or medicines to clients is considered a retail sale, and you are generally required to report sales tax based on the product’s selling price.

Exemptions

If a drug or medicine will be administered to food animals or to animals that will be sold by their owners in the regular course of business, the sale, use, or purchase of the drug or medicine may not be taxable.

This is true whether you are considered the retailer or consumer of the product.

Definition

Veterinary drugs and medicines are considered to be substances or preparations intended for the use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals.

They include:

Pills (other than vitamins), Capsules (other than vitamins), Liquid medications, Injectable drugs, Ointments, Vaccines, Intravenous fluids, Medicated soaps (available only to veterinarians), etc.

Supplies you use in your practice, such as dressings, sutures, splints, and so forth, are not considered drugs or medicines. You are generally considered the consumer of those supplies.

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

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

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