California Sales Tax for Veterinarians - Credit Sales

Tax for an item sold on credit is due with the tax return for the reporting period in which you make the sale, even though you may not receive full payment until a later date.


Tax is due on the full selling price.

Example

You perform surgery on a horse in March and keep the animal at your clinic for two days for observation. On your bill, you separately state a $50 charge for the horse’s feed (as explained earlier, when related to professional services and listed as a separate charge, the sale of feed is generally considered a taxable retail sale). Your client pays you $25, and agrees to pay the balance in future months.

Regardless of when you receive the balance due, the $50 selling price of the feed must be included on your tax return for the reporting period that includes the month of March.

You may exclude amounts for insurance, interest, finance, and carrying charges from the taxable selling price you report for a credit sale, provided you keep adequate and complete records itemizing those charges.

If you have reported tax on a transaction and do not receive payment from your customer, you may be able to claim a bad debt deduction on your sales and use tax return.


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

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

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