Missouri – Taxability of Non-Prescription Vaccines Used in Veterinarian Practices

2/20/2013

SALT Report 2168 – The Missouri Department of Revenue issued a letter ruling regarding non-prescription vaccines administered in a veterinary office as a service to its clients.  Generally, the office does not separately charge for that service and they do not collect sales tax on those charges. The veterinary office requested guidance as to whether its sales and purchases of the non-prescription vaccines are subject to sales or use tax.

In its response the Department referred to the following regulations:

Section 144.030.2(19) RSMo which provides an exemption for “all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items…[and] drugs required by the Food and Drug Administration to meet the over-the-counter drug product labeling requirements in 21 CFR 201.66, or its successor, as prescribed by a health care practitioner licensed to prescribe…” and Section 144.030.2(23) RSMo which provides an exemption from sales tax for “all sales of feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber…”

Based on the above regulations the Department determined that he Taxpayer’s purchases are not exempt under §144.030.2(19), RSMo, because the vaccines are neither prescription drugs nor are they over-the-counter drugs subject to the labeling requirements provided in 21 CFR 201.66.

Similarly, the Taxpayer’s purchases do not qualify for the exemption in §144.030.2(23), RSMo, because the animals receiving the vaccinations are not used in the production of food or fiber.

Finally, the Department determined that the veterinary practice is required to pay Missouri sales or use tax on its purchase of non-prescription vaccines because they are deemed to be for the Veterinarian’s own use. Therefore, the Taxpayer is required to pay sales or use tax on its purchases of nonprescription vaccines used in its veterinary practice.

For Further Information

Missouri Department of Revenue – Letter Ruling LR 7178