SALT Report 2975 – The Wisconsin Department of Revenue updated a publication that provides sales and use tax guidance for veterinarians. Updates reflect the Department’s position regarding laws recently enacted by the State’s Legislature and are effective as of September 1, 2013.
Taxable Sales by Veterinarians
The sale, license, lease, or rental of tangible personal property, other than drugs, by veterinarians are subject to Wisconsin sales and use tax, unless the sale qualifies as an occasional sale or another exemption applies. Because of this, veterinarians are deemed the consumers of:
- Tangible personal property and items, property, and goods used by them in the performance of veterinary services related to domestic animals
- Tangible personal property and items, property, and goods furnished to their customers in the performance of veterinary services related to domestic animals, and
- Any drugs for animals, including drugs sold over the counter
Therefore, sales tax does not apply to the veterinarians’ charges for drugs sold to its customers, or charges for tangible personal property or items, property, or goods used or furnished by the veterinarian in the performance of its veterinary services.
However, sales of tangible personal property and items, property or goods by a veterinarian to a customer in the performance of a non-veterinary service, such as dog grooming, is subject to sales tax if the property is physically transferred to the customer.
Exempt Sales by Veterinarians
Sales of the following veterinary services and tangible personal property by veterinarians are exempt from sales and use tax:
- Cremation services
- Custom farming services
- Euthanasia services
- Microchipping services
- Occasional sales
- Sales to farmers
- Sales to other persons who provide valid exemption certificates
- Services performed on exempt animals
- Items used by veterinarians or furnished to customers in the performance of services
- Tattooing services
- Veterinary services
Drugs Purchased by Veterinarians
All drugs for animals purchased by a veterinarian are subject to sales and use tax. This includes purchases of drugs by a veterinarian who will sell the drugs without performing any veterinarian services, regardless of whether the customer is a pet owner, another veterinarian, or a retailer who will sell the drugs, or who will use the drugs in the performance of a veterinary service.
Lastly, the publication provides a list of taxable and exempt purchases, and discusses the occasional sale exemption; resale and exemption certificates; when and where a sale occurs; and drugs sold with syringes.
For Further Information