New York State Tax Bulletin ST-930 (TB-ST-930) was released on July 27, 2012 clarifying the taxability of veterinary services and tangible goods.
The following lists provide samples of what is and is not taxable, plus special handling of purchases made by veterinarians that qualify for a refund of sales tax.
Taxable Services
- Boarding
- Grooming and clipping
- Pet cremation
- Pet burial services
Non-Taxable Services
Services provided by a licensed veterinarian such as:
- Diagnosis and treatment of illness or disease (of an animal)
- Wellness visits
- Administering vaccinations
- Hospitalization of an animal due to medical reasons
- Grooming and clipping as part of surgery or practice)
- Guide, hearing or service dog services such as grooming, nail clipping or boarding
Taxable Sales
If any item is intended for resale, “[a] veterinarian must have a Certificate of Authority and must give the seller a properly completed Form ST-120, Resale Certificate, to make purchases for resale."
- Sale of an animal (except for guide, hearing and service dogs)
- Property not for use in the care of domestic animals or poultry such as calendars, mugs, t-shorts, pictures, key chains
Non-Taxable Sales
It is expected that the veterinarian paid sales tax when purchasing these items.
- Drugs, medicines and bandages sold for pet care;
- Leashes, collars and pet beds;
- Flea and tick collars, sprays and medications;
- Pet food;
- Grooming tools; and
- Pet cages and carriers
- Purchases Made By Veterinarians
Purchases Made By Veterinarians
All tangible personal property or taxable services purchased by a veterinarian for use in the practice of veterinary medicine or for performing taxable services are taxable at the time of purchase. Taxable purchases include:
- Medical equipment and supplies;
- Drugs and medicines;
- Office equipment and supplies;
- Boarding equipment and supplies;
- Cleaning supplies;
- Equipment repair; and
- Landscaping and lawn maintenance.
Refunds and Credits
…a refund or credit is available for sales tax paid on a veterinarian’s purchases of drugs or medicines used to provide veterinary services to livestock or poultry if the livestock or poultry is used in the production of tangible personal property for sale by farming. The refund or credit is also available if the drugs or medicines are sold to a person engaged in farming for use on such livestock or poultry.
Sales To Tax-Exempt Purchasers
Veterinarians must collect a valid certificate of exemption from sales tax in order to not charge sales tax to the follow tax-exempt purchasers:
- Farmers (when making purchases relating to animals used in farm production);
- Commercial horse boarders;
- Owners of guide, hearing or service dogs;
- Federal, New York State and local New York governmental entities;
- The United Nations, diplomatic missions and diplomatic personnel;
- Certain religious, charitable, scientific and educational institutions;
- Certain organizations organized and operated for the prevention of cruelty to children or animals;
- Certain Indian nations; and
- Certain organizations consisting of past and present members of the armed forces of the United States.
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