By Terry Barrett, CPA, Tax Senior Manager
Veterinarians Receive Sales and Use Tax Exemption for Certain Purchases
Governor Youngkin has signed legislation passed by the General Assembly providing a sales and use tax exemption to certain purchases by veterinarians. Specifically, the legislation creates a sales tax exemption for veterinarians on their purchases of prescription medicines and drugs that are administered or dispensed to patients within a veterinarian-client-patient relationship, as well as those that are resold to pet-owners. The exemption is effective July 1, 2022 through June 30, 2025.
Background of Virginia Veterinary Tax Compliance
Historically Virginia has considered veterinarians, as providers of professional services, to be the taxable users and consumers of prescription medicines and drugs used in the treatment of animals, with the exception of animals used in agricultural production for market. Thus, veterinarians have had to pay the tax to their suppliers on prescription medicines and drugs they use in their veterinarian practices as well as those that are resold to patients/pet owners. Pet stores, pharmacies, and other sellers of pet medications, on the other hand, have been able to purchase prescription medicines and drugs for resale exempt of the tax. The sale of prescriptions medicines and drugs, including prescription food, are exempt when sold to pet owners.
If you have questions on this or other veterinary tax matters, please contact your Opportunity Advisor or Email | Call: 804.747.0000. We can advise you on strategic tax savings and planning opportunities that best fit your unique needs.
About the Author
Terry Barrett, CPA, Tax Senior Manager
Terry Barrett specializes in state and local tax concerns for her clients. She has over 30 years of experience working in the public and private accounting sector. She is a graduate of Virginia Commonwealth University.
More Insights from Terry BarrettThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
