12 CSR 10-103.390 - Veterinary Transactions
(1) In general,
veterinarians are rendering services not subject to sales tax. However,
veterinarians making retail sales of tangible personal property are responsible
for collecting and remitting sales tax on the gross receipts derived from these
sales.
(2) Definition of Terms.
(A) Livestock-cattle, calves, sheep, swine,
ratite birds, including but not limited to, ostrich and emu, aquatic products
as defined in section
277.024, RSMo, elk documented as
obtained from a legal source and not from the wild, goats, horses, other equine
or rabbits raised in confinement for human consumption.
(B) Prescription drug-a drug administered,
prescribed, or dispensed only by or upon a lawful written or oral prescription
or order of a licensed veterinarian. A prescription must exhibit one (1) of the
following legends:
1. "Rx Only"; or
2. "Caution: Federal law restricts this drug
to be used by or on order by a licensed veterinarian."
(C) Veterinarian-a person licensed to treat
animals medically.
(3)
Basic Application of Tax.
(A) Veterinarians
pay tax on their purchases of items consumed in their veterinarian service.
Such items may include, but are not limited to, instruments, bandages, splints,
syringes, furniture, and equipment.
(B) Veterinarians that sell items including
but not limited to, leashes, shampoos, collars, nonprescription drugs, and food
for animals (except livestock or poultry) for nonfood producing animals are
responsible for collecting and remitting tax on the gross receipts derived from
these sales. Veterinarians should provide an exemption certificate to the
vendor when purchasing items for resale.
(C) Purchases for resale subsequently used or
consumed by the veterinarian are subject to the applicable tax. The
veterinarian should accrue and remit this tax to the Missouri Department of
Revenue. Veterinarians have used or consumed items purchased for resale if they
dispense these items to clients for no charge at the same time they provide a
non-taxable service. Medications and vaccines administered to livestock or
poultry in the production of food or fiber are exempt from tax.
(D) Prescription drugs are exempt. Products
bearing labels, such as, "Available through veterinarians," "For sales to
licensed veterinarians" or "Available through licensed veterinarians
exclusively," are not prescription drugs and are subject to tax.
(4) Examples.
(A) A veterinarian purchased an examining
table and operating supplies for the veterinary practice. The purchase is
subject to tax.
(B) A veterinarian
sells dog food at retail and also operates a kennel. The veterinarian feeds the
dogs in the kennel the same dog food the veterinarian purchases exempt for
resale. When the veterinarian removes the food from inventory to use in the
kennel, tax is due.
(C) A
veterinarian sells a poultry farmer nonprescription vaccines for use on turkeys
raised for the production of food. The farmer also purchases vaccines for the
farmer's pets. The vaccines for the poultry are exempt; however, the vaccines
for the pets are subject to sales tax.
(D) A veterinarian purchases surgical tools
bearing the label "For sale to licensed veterinarians" to use in the practice.
This purchase is subject to tax.
(E) A customer takes a sick cat to the
veterinarian. The veterinarian examines the cat and gives the cat an antibiotic
shot, administers nonprescription eye drops, and gives the customer a bottle of
nonprescription eye drops to administer twice a day for two weeks, starting
tomorrow. The bill reads as follows: Office visit $25; Antibiotic shot $15; Eye
drops $5; Bottle of eye drops $12; Total $57. There is no tax due from the
customer on the shot or eye drops administered by the veterinarian because the
veterinarian uses them in providing the service. There is no tax due from the
veterinarian on the purchase of the antibiotic shot because it is an exempt
prescription drug. The veterinarian must pay tax on the purchase of the
nonprescription eye drops administered in the office. The customer must pay tax
on the purchase of the separate bottle of nonprescription eye drops.
(F) A veterinarian has items for sale in the
waiting room area including pet food, flea collars, and shampoos. A customer
purchases a flea collar for his/her dog. The veterinarian must collect tax on
the sale of the flea collar.
Notes
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