Veterinarians and Veterinary Clinics

Definitions

Livestock

Includes all animals of the equine, bovine, or swine class, including goats, sheep, mules, horses, cattle, ratites, and other grazing animals raised for commercial purposes. The term "livestock" also includes fish raised for commercial purposes.

Medicine

Means a preparation or substance for use in the cure, alleviation, mitigation, treatment or prevention of illness.

Poultry

Includes all domesticated birds that serve man as a source of food, eggs, or meat.

Practitioners of the Healing Arts

Includes veterinarians.

Prescription

Includes any order for drugs or medicinal products and supplies, written or communicated by a licensed practitioner authorized to prescribe medicinal drugs.

Sales Tax Liability

Sales tax applies to the sale, rental, or lease of goods (tangible personal property) and certain services in Florida unless the transaction is specifically exempt. The sales tax is added to the price of taxable goods or services and collected from the purchaser at the time of sale. Veterinarians and veterinary clinics who sell taxable items must register as sales and use tax dealers to collect and remit sales tax (see "Registering to Collect Sales Tax").

The sale of non-prescription food for dogs, cats, birds, fish, circus animals, and zoo animals is taxable. Pet products such as chains, collars, cages, soaps, and detergents are taxable.

Sales tax is also due when a veterinarian or veterinary clinic rents or leases commercial property.

Use Tax Liability

Use tax complements and is similar to sales tax. The use tax and sales tax rates are the same, including discretionary sales surtax (county tax), if applicable. Use tax applies when items are purchased without paying tax to the supplier and then used in the business or for a taxable purpose. It also applies to taxable goods and services brought into Florida untaxed, or taxed at a rate less than the sales tax rate. Items that are specifically exempt from sales tax are also exempt from use tax.

Taxable Purchases

Use tax applies to taxable supplies or items purchased tax-exempt and then used by veterinarians and veterinary clinics in rendering their professional services. Some examples of common taxable items used by veterinarians are: rabies tags, identification chips, rubber gloves, disposable medical restraint collars and muzzles, and plastic vials and jars for dispensing medications. Laboratory supplies used in making diagnoses such as diagnostic kits, blood collecting tubes and needles, and x-ray films and developing solutions are taxable. Instruments and equipment purchased by a veterinarian or veterinary clinic for use in the business are also taxable. Items initially purchased tax-exempt for resale to customers (such as pet products and supplies) but then later used in the business are subject to use tax.

Out-of-State Purchases

When taxable items or services are purchased through the Internet or a mail-order catalog company, or purchased in another state and then shipped into Florida, use tax may be due. Use tax is owed if sales tax was not paid or if the sales tax paid to another state was less than Florida's rate. Some items commonly purchased from out-of-state retailers that are subject to use tax are office supplies, business furniture, and computer software and hardware.

Exemptions

Sales tax does not apply to the following:

• Professional services rendered by veterinarians or veterinary clinics.
• Boarding charges for animals.
• Medicines dispensed or purchased by veterinarians and veterinary clinics for the treatment of, or consumption by, a patient.
• "Prescription diets" dispensed as treatment of a diagnosed health disorder by, or on the prescription of, a licensed veterinarian.
• Feed for poultry and livestock, including racehorses and fish raised for commercial purposes.
• Purchases by a veterinarian of antiseptics, absorbent cotton, gauze for bandages, lotions, vitamins, and worm remedies.
• Powders and sprays designed to prevent or treat flea and tick infestations in dogs or cats, if they are ordered and dispensed by a veterinarian.
• Germicides used directly upon bodies of animals as a disinfectant.
• X-ray opaques (also known as opaque drugs and radiopaque) such as opaque dyes and barium sulfate, when used in connection with medical x-rays.

The sale of food for guide dogs, commonly known as "seeing eye" dogs, is exempt. However, the purchaser must present a Consumer's Certificate of Exemption for the Blind (Form DR-152) issued by the Department of Revenue.

Registering to Collect Sales Tax

Before veterinarians or veterinary clinics can engage in or conduct business in Florida, they must first contact DOR to determine whether sales tax registration is required. If your business is required to register, you can do so via the Department's Internet site. Go to www.myflorida.com/dor and click on e-Services. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1).Obtain Form DR-1 from your local DOR service center or one of the contacts listed below. Failure or refusal to register for sales and use tax may subject the veterinarian or veterinary clinic to a $100 registration fee for each place of business.

Annual Resale Certificate

As a registered dealer, you will be provided with an Annual Resale Certificate (Form DR-13). Give a copy of this form to the selling dealer when making tax-exempt purchases for resale. Registered dealers should not extend a resale certificate when making taxable purchases or rentals for their own use.

New Applicants

When filing an initial application for licensure as a veterinarian or veterinary clinic, submit the following information to the Department of Business and Professional Regulation:

• Your current DOR sales tax registration number or
• A signed statement that you have applied for a DOR sales tax registration number.

If you need assistance concerning your registration requirement, contact Taxpayer Services.

For Information and Forms

Persons with hearing or speech impairments may call the TDD at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site, or
• Mail form requests to:
  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-3761