PS 92(11.1)

Sales and Use Taxes on Sales  and Purchases Made by Veterinarians

This publication has been superseded by PS 92(11.2)

BACKGROUND:  Conn. Gen. Stat. §12-408 imposes sales and use taxes on the privilege of making sales at retail of tangible personal property in this state. Veterinarians are considered to be retailers of tangible personal property for purposes of the Sales and Use Tax Act.  Conn. Gen. Stat. §12-412(4) provides an exemption from sales and use taxes for sales of medicine by prescription. Conn. Agencies Regs. §12-426-13 defines "medicine by prescription" as meaning drugs and medicine, commonly known and regarded as such as druggists or pharmacists, prescribed for the specific treatment of disease by persons authorized by the laws of this state to issue prescriptions. 

PURPOSE: On October 9, 1992, the Department issued PS 92(11) to reiterate the proper sales and use tax treatment of sales and purchases of tangible personal property by veterinarians.  This Policy Statement supersedes PS 92(11) and provides additional guidance to veterinarians on when they must charge sales tax.

SALES THAT ARE EXEMPT: Sales of the following items made by veterinarians are exempt from sales and use taxes:

Sales of medicine by prescription, as defined in Conn. Agencies Regs. §12-426-13, but only if the drugs or medicine are labeled with either:

• the "Federal Legend" required by 21 U.S.C. §353(b) ("Caution:  Federal law prohibits dispensing without prescription ."); or
• the "Veterinary Label" required by 21 U.S.C. §353(f) ("Caution: Federal law restricts this drug to use by or on the order of a licensed veterinarian.").
• Sales of nonprescription drugs and medicines that are described in Conn. Gen. Stat. §12-412(48) by retailers, including veterinarians.
• Sales of syringes and needles by prescription.

SALES THAT ARE TAXABLE: SALES THAT ARE TAXABLE: Sales by veterinarians (or other retailers) of pet supplies, such as specially formulated pet foods, flea or tick treatments, nonprescription vitamins, nonprescription dewormers, pet carriers, leashes, etc. are subject to sales and use taxes. Products whose labels only contain words such as "sold exclusively through veterinarians," "available through veterinarians only," "for veterinary use only" or similar words without the "Federal Legend" or "Veterinary Label" are subject to sales and use taxes.

PURCHASES BY VETERINARIANS: Veterinarians who have been issued a seller's permit by the Department and, thus, are registered as retailers may purchase without paying tax items that they will resell in the regular course of their business if a properly executed resale certificate is provided by them to their suppliers. To be issued a seller's permit, a veterinarian must file an Application for Tax Registration Number (Form REG-1).

Veterinarians may also purchase without paying tax medicine by prescription, labeled as described above, for use by them in their profession.

On the other hand, the purchase by veterinarians of supplies used in their practice, including, but not limited to, cotton balls, bandages, alcohol, scalpel handles and blades, instruments, equipment and office furniture, are subject to sales and use taxes and may not be purchased on a resale basis. If, for any reason, a veterinarian purchases such items without paying tax, the veterinarian must report the purchase price of such items and pay use tax on a Sales and Use Tax Return (Form OS-114).

EFFECTIVE DATE: Because this statement reiterates (rather than changes) the Department's position, this Policy Statement is applicable to all periods.

EFFECT ON OTHER DOCUMENTS: Policy Statement PS 92(11) is superseded and may no longer be relied upon as of the date of issuance of this Policy Statement. 

PS 92(11.1)
Sales and use taxes
Issued: 2/11/93