California Sales Tax for Veterinarians - Taxability of Purchases

Tax generally applies to your purchases of items you will consume in your practice.


However, if you use a resale certificate to purchase merchandise you will resell, tax will not apply to the transaction.

If you purchase property for resale but use it for another purpose, you may be required to pay use tax.

The following slides describe common situations in which sales or use tax may apply to your purchases.

Generally, you should use a resale certificate to purchase items you will sell at retail, and pay sales tax reimbursement to your suppliers or use tax on purchases of items you will consume.

However, it may be difficult for you to apply this to all of your purchases, since you may both resell and consume certain products you buy for your practice.

You may find it helpful to adopt one of the following purchasing methods and use it consistently in your practice.

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

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

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