Are vaccines that a veterinarian buys and gives to a client's dog, cat, or horse exempt from Virginia sales and use tax?

Plain-English summary

A taxpayer asked the Department to clarify whether Virginia's retail sales and use tax exemption for veterinarian-dispensed medicines and drugs covers vaccines given to companion animals -- dogs, cats, and horses. The taxpayer noted that some of these vaccines can be bought over the counter and given by the animal's owner without a prescription, but that most are actually purchased and administered by veterinarians themselves.

The Department confirmed the exemption applies. Virginia Code § 58.1-609.10 9 exempts medicines and drugs a veterinarian dispenses or sells on prescription or work order; § 58.1-609.10 22 separately exempts a veterinarian's own purchases of prescription medicines/drugs administered within a veterinarian-client-patient relationship (a temporary exemption running from July 1, 2022 through July 1, 2025). Looking to the Virginia Drug Control Act's definition of "drug" (substances intended to diagnose, cure, mitigate, treat, or prevent disease, or to affect the structure or function of the body, in animals as well as humans), the Department found that canine, feline, and equine vaccines fit that definition -- so they qualify as exempt "drugs" when purchased and administered by a veterinarian within that professional relationship. Two things this ruling does NOT cover: vaccines used in vaccination machines (addressed separately in P.D. 96-349) and medicines/drugs veterinarians buy for agricultural production animals headed to market, which fall under a different exemption at Va. Code § 58.1-609.2 1.

What this means for you

Veterinary practices and veterinary supply purchasers

Vaccines you purchase and administer yourself to companion animals within a normal veterinarian-client-patient relationship are exempt from Virginia retail sales and use tax as "drugs" -- you don't need a separate, vaccine-specific exemption certificate; the existing veterinarian medicine/drug exemptions cover them.

Pet owners

This exemption applies to vaccines your veterinarian buys and gives your pet, not necessarily to over-the-counter vaccines you purchase yourself and administer at home -- the ruling is expressly limited to vaccines administered within the veterinarian-client-patient relationship.

Accountants and tax professionals serving veterinary clients

Watch the temporary window on § 58.1-609.10 22 (July 1, 2022 through July 1, 2025) -- it's not a permanent exemption, so confirm current law before relying on this ruling for purchases after that date. Also keep the two carve-outs in mind: vaccination-machine use (P.D. 96-349) and agricultural production animal purchases (§ 58.1-609.2 1) are governed by different rules, not this ruling.

Common questions

Q: Are vaccines my veterinarian gives my dog, cat, or horse exempt from Virginia sales tax?
A: Yes, when purchased and administered by the veterinarian within a veterinarian-client-patient relationship, they qualify as exempt "drugs" under Va. Code § 58.1-609.10 9 and 22.

Q: Does this exemption cover over-the-counter vaccines I buy myself and give to my pet at home?
A: This ruling addresses vaccines administered by a veterinarian within the professional client-patient relationship; it doesn't extend the exemption to owner-administered, over-the-counter purchases.

Q: Is this exemption permanent?
A: The specific exemption for a veterinarian's own purchases of prescription medicines/drugs (§ 58.1-609.10 22) runs only from July 1, 2022 to July 1, 2025; check current law for purchases outside that window.

Q: Does this ruling cover vaccines used in vaccination machines, or vaccines for livestock headed to market?
A: No -- the Department expressly excluded both from this ruling's scope, since they're addressed by a separate prior ruling (P.D. 96-349) and a separate agricultural-production-animal exemption (§ 58.1-609.2 1), respectively.

Citations and references

• Va. Code § 58.1-609.10 9 (exemption for veterinarian-dispensed medicines/drugs on prescription or work order)
• Va. Code § 58.1-609.10 22 (temporary exemption for veterinarian purchases within a veterinarian-client-patient relationship, 7/1/2022-7/1/2025)
• Va. Code § 54.1-3401 (Virginia Drug Control Act definition of "drug")
• Va. Code § 58.1-609.2 1 (separate exemption for agricultural production animal medicines/drugs)
• P.D. 96-349 (11/27/1996) (vaccination machines exemption analysis)

Subject

Exemption: Veterinarians - Veterinary drugs and vaccines sold or purchased by a veterinarian and prescribed to a client patient relationship are exempt

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 23-55

Original ruling text

May 17, 2023

Re: Request for Ruling: Retail Sales & Use Tax

Dear *:

This letter is in reply to your request on behalf of the * (the “Taxpayer”) regarding the Virginia retail sales and use tax application to certain animal vaccines.

FACTS

The Taxpayer requests a ruling on the application of the retail sales and use tax exemption provided in Virginia Code § 58.1-609.10 22 to all vaccinations purchased and administered by veterinarians to companion animals (canine, feline, equine). The Taxpayer acknowledges that some vaccines may be purchased over-the-counter without a prescription and administered by the owner of the animal. However, the Taxpayer states the majority of vaccines are administered by veterinarians only.

RULING

Medicines and drugs dispensed by or sold on prescriptions or work orders of veterinarians are exempt from the retail sales and use tax under Virginia Code § 58.1-609.10 9. Additionally, Virginia Code § 58.1-609.10 22 exempts veterinarians from retail sales and use tax on their purchases of prescription medicines and drugs that are administered or dispensed to patients within a veterinarian-client-patient relationship beginning July 1, 2022 and ending July 1, 2025.

Virginia Code § 54.1-3401 of the Virginia Drug Control Act defines “drug,” in pertinent part, as:

(ii) articles or substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals; (iii) articles or substances, other than food, intended to affect the structure of any function of the body of man or animals.

Animal vaccines may be categorized as “substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals” as stated above. Therefore, the companion animal vaccines listed by the Taxpayer for canines, felines, and equines are considered drugs in accordance with Virginia Code § 54.1-3401, and qualify for the exemption pursuant to subdivisions 9 and 22 of Virginia Code § 58.1-609.10.

Similarly, Virginia Code § 58.1-609.2 1 provides an exemption from the retail sales and use tax for “ medicines and drugs sold to a veterinarian provided they are used or consumed directly in the care, medication, and treatment of agricultural production animals or for resale to a farmer for direct use in producing an agricultural product for market ” In Public Document (P.D.) 96-349 (11/27/1996), the Department addressed this exemption with regard to vaccination machines and the medicines or drugs used in such machines. This ruling does not apply to purchases of medicines and drugs by veterinarians with respect to agricultural production for market permitted under Virginia Code § 58.1-609.2 1, nor does it apply to vaccines used in vaccination machines as addressed in P.D. 96-349.

This ruling is based on the facts presented as summarized above. Any change in facts or the introduction of new facts may lead to a different result.

The Code of Virginia sections and public document cited are available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department’s web site. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/4425.W

Related Documents

96-349