Are nail clipping, grooming, and medicated baths performed by a veterinarian's staff subject to New York sales tax?

Plain-English summary

A licensed veterinary hospital asked whether nail clipping, grooming (shaving), and medicated baths its veterinarians and staff perform on animals are subject to New York sales tax. The hospital doesn't employ a separate groomer -- its own veterinary staff performs these services, sometimes to treat an existing medical problem (infected paw pads from overgrown nails, flea/tick-infested matted fur requiring a "solution dip," or skin conditions like seborrhea or allergic reactions).

New York exempts services rendered by a licensed veterinarian that constitute the actual "practice of veterinary medicine" -- but that exemption specifically does not extend to grooming, clipping, or boarding as such, even when a licensed veterinarian performs them. The dividing line the Department drew here is medical necessity and connection: grooming, bathing, or clipping performed as a necessary part of, and directly related to, diagnosing or treating an animal's medical condition is exempt veterinary medical service. The identical-looking service performed for routine cosmetic or general-care reasons (unrelated to treating a diagnosed condition) is a taxable "maintaining or servicing" of tangible personal property (animals count as tangible personal property for this purpose) -- regardless of whether a veterinarian or a groomer does the work.

Because grooming, bathing, and clipping are presumed taxable by default, the veterinarian bears the burden of proving -- and keeping records to substantiate -- that a particular instance was medically necessary and directly related to treating a diagnosed condition in order to claim the exemption.

What this means for you

Veterinary hospitals and clinics

Track and document why each grooming, clipping, or bathing service was performed. If it's tied to a specific diagnosed medical condition and performed as a necessary part of treatment, it's exempt; if it's routine or cosmetic, it's taxable even if a licensed veterinarian does it personally. Since the burden of proof is on you, keep records (medical notes, diagnosis, treatment plan) tying the service to the underlying condition.

Pet owners

Expect to see sales tax charged on routine grooming, nail trims, or baths at the vet's office unless the visit is specifically to treat a diagnosed medical issue -- the tax treatment doesn't change just because the provider happens to be a licensed veterinarian rather than a groomer.

Accountants and tax professionals

This ruling illustrates that New York's veterinary-services exemption (Tax Law § 1115(f), 20 NYCRR 528.24) is activity-based, not provider-based -- the same physical act (clipping a nail) can be exempt or taxable purely depending on the medical purpose behind it. Any veterinary practice performing both types of service should register as a vendor, collect tax on the taxable portion, and maintain documentation distinguishing the two.

Common questions

Q: Is nail clipping at the vet always exempt from sales tax?
A: No. It's exempt only when performed to treat an existing medical condition (like an ingrown or overgrown nail causing injury); routine nail trims are taxable.

Q: Does it matter that a licensed veterinarian (not a groomer) performs the grooming or bathing?
A: No. The exemption turns on whether the service is a necessary part of diagnosing or treating a medical condition, not on who performs it -- nonprofessional grooming, bathing, and clipping are taxable even when done by a veterinarian.

Q: Who has to prove a grooming or bathing service was exempt?
A: The veterinarian. These services are presumed taxable, and the burden is on the veterinarian to prove and document that a specific instance qualifies for the medical exemption.

Q: Does a veterinary hospital need to register as a sales tax vendor?
A: Yes, if it performs any taxable grooming, bathing, or clipping services -- it must register as a vendor, collect the tax, and file returns on that portion of its business.

Citations and references

Statutes and guidance:

• Tax Law § 1105(c)(3) (maintaining, servicing, or repairing tangible personal property)
• Tax Law § 1115(f) (veterinary services exemption)
• Tax Law § 1132(c) (burden of proof for exemption)
• 20 NYCRR 526.8(a) (tangible personal property, including animals)
• 20 NYCRR 528.24 (veterinary services exemption; taxable transactions)
• Education Law §§ 6701, 6702 (practice of veterinary medicine; use of title)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2005.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a05_37s.pdf

Original ruling text

New York State Department of Taxation and Finance

TSB-A-05(37)S
Sales Tax
October 25, 2005

Office of Tax Policy Analysis
Technical Services Division
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S040303A

On March 3, 2004, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Rotterdam Veterinary Hospital, 2806 Guilderland Avenue, Schenectady,
NY 12306.
The issue raised by Petitioner, Rotterdam Veterinary Hospital, is whether nail clipping,
grooming (shaving), and medicated baths performed by veterinarians and their professional staff
are subject to State and local sales and use taxes.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner, a licensed veterinary hospital, performs nail clipping, grooming (shaving), and
medicinal bathing on animals in association with care and services directly related to veterinary
medical care. Some nail clippings are done because of an existing medical problem, such as
infected pads due to overgrown nails into the pads of the animals’ feet. Grooming (shaving) may
be performed on an animal whose hair is matted and infested with ticks, fleas, etc. A “solution
dip” is administered in conjunction with such grooming procedure. Medicinal baths are
performed as a result of a medical condition; e.g., seborrea, pyoderma, parasitic infestation, or
allergic skin condition. Petitioner does not employ a groomer to perform any of these services.
Veterinarians and their professional staff perform these services for Petitioner’s customers.
Applicable law and regulations
Section 1105(c)(3) of the Tax Law imposes sales tax on the receipts from every sale,
except for resale, of the service of “maintaining, servicing or repairing tangible personal property
… not held for sale in the regular course of business.”
Section 1115(f) of the Tax Law provides, in part:
Services rendered by a veterinarian licensed and registered as required by the
education law which constitute the practice of veterinary medicine as defined in said law,
including hospitalization for which no separate boarding charge is made, shall not be
subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but
the exemption allowed by this subdivision shall not apply to other services provided by a
veterinarian to pets and other animals, including, but not limited to, boarding, grooming
and clipping. . . .
Section 526.8(a) of the Sales and Use Tax Regulations provides, in part:

-2­
TSB-A-05(37)S
Sales Tax
October 25, 2005
The term tangible personal property means corporeal personal property of any
nature having a material existence and perceptibility to the human senses. Tangible
personal property includes, without limitation:
*

*

*

(4) animals, trees, shrubs, plants and seeds;
Section 528.24 of the Sales and Use Tax Regulations provides, in part:
(a) Exemption. (1) The exemption is allowed for services rendered by a licensed
veterinarian which constitute the practice of veterinary medicine, including
hospitalization for which no separate boarding charge is made.
(2) The exemption is not applicable to other services provided by a veterinarian,
including but not limited to boarding, grooming and clipping.
(3) The exemption is allowed for articles of tangible personal property designed
for use in some manner relating to domestic animals or poultry, when sold by such a
licensed veterinarian.
(b) Definitions. (1) Practice of veterinary medicine. Section 6701 of the Education
Law defines the practice of the profession of veterinary medicine as diagnosing, treating,
operating or prescribing for any animal disease, pain, injury, deformity or physical
condition. Animal includes every living creature except human beings.
(2) Use of title veterinarian. Section 6702 of the Education Law provides that
only a person licensed or exempt under article 135 of the Education Law shall practice
veterinary medicine or use the title veterinarian.
*

*

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(d) Taxable transactions. (1) Nonprofessional services performed by a
veterinarian are subject to tax.
Example 1: Boarding, clipping and washing of pets are services which are subject
to tax.
*

*

*

(3) Veterinarians who carry on taxable activities are required to register as
vendors, collect the tax and file returns.

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TSB-A-05(37)S
Sales Tax
October 25, 2005

Opinion
Petitioner is a licensed veterinary hospital that performs grooming (shaving), medicinal
bathing, and nail clipping in conjunction with veterinary medical services. Section 1115(f) of the
Tax Law provides an exemption from sales tax for services rendered by a veterinarian which
constitute the practice of veterinary medicine. The exemption allowed by section 1115(f) does
not apply to grooming, bathing, or nail clipping unless such services are performed as a
necessary part of, and are directly related to, the veterinary medical service provided to the
animal.
Grooming (shaving) an animal infested with fleas and ticks, in conjunction with a
“solution dip,” is an exempt veterinary medical service. Medicinal baths given to treat a medical
condition such as seborrhea, pyoderma, parasitic infestations, or allergic skin conditions, are also
exempt veterinary medical services. Similarly, nail clippings performed to treat an existing
medical condition, such as an ingrown claw, are exempt from sales tax. In these cases, the
services are a necessary part of, and are directly related to, the veterinary medical service
provided to the animal.
However, nonprofessional grooming, bathing and clipping services; i.e., services which
do not constitute the practice of veterinary medicine, are taxable under section 1105(c)(3) of the
Tax Law, regardless of whether such services are performed by a licensed veterinarian.
Veterinarians who perform taxable services are required to register as vendors, collect sales tax
and file returns. See section 528.24(d) of the Sales and Use Tax Regulations.
For purposes of Article 28 of the Tax Law, grooming, bathing and clipping services
performed on animals are presumed to be taxable. The veterinarian has the burden of proving
that such services qualify for exemption under section 1115(f) of the Tax Law, and maintaining
the necessary records to substantiate that the services are exempt. See section 1132(c) of the Tax
Law.

DATED: October 25, 2005

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.