When were prescription pet food and veterinary health products exempt from Florida sales tax?

Subject

Veterinary Products

Plain-English summary

Prescription or therapeutic pet food and curative or remedial veterinary products were exempt when a licensed veterinarian ordered and dispensed them for treatment or prevention of a diagnosed health disorder. The ruling applied that treatment-based result to products described as Advantage, Program, Frontline, and Heartgard when prescribed and recorded in the animal's medical record.

The same products could be taxable when sold off the shelf, without a written prescription, and independently of veterinary treatment. The clinic could buy products intended for resale without paying tax to the supplier by giving a resale certificate.

What this means for you

The product name alone did not control. How the product was prescribed, documented, and sold determined the ruling's treatment.

Common questions

Q: Was therapeutic pet food exempt? Yes, when prescribed or dispensed for a diagnosed health disorder.

Q: Were independent off-the-shelf sales exempt? No, unless the product itself had another specific exemption.

Q: Should the clinic pay tax to its supplier on resale inventory? No; it should issue a resale certificate.

Citations and references

• Fla. Stat. § 212.08(2) — medical products and veterinary treatment
• Fla. Admin. Code r. 12A-1.020(13) — veterinary medicines and products
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 00A-076

Original ruling text

SUMMARY

QUESTION: What is the taxable status of prescription pet
food and veterinary products sold and dispensed in
conjunction with veterinary services?

ANSWER - Based on Facts Below: The sales of prescription or
therapeutic pet food, and veterinary products possessing
curative or remedial properties which are consumed by
animals for alleviation of pain or the cure or prevention
of sickness, disease, or suffering, by licensed
veterinarians in connection with treatment of the animals,
are exempt from tax. Off the shelf type sales, without a
written prescription, and independent of treatment by the
veterinarian, would be taxable.

Nov 15, 2000

Re: Technical Assistance Advisement 00A-076
Sales and Use Tax - Veterinary Products
Section: 212.08(2), F.S.
Rule: 12A-1.020, F.A.C.

Dear :

This is in response to your letter of October 3, 2000,
referencing the letter of August 15, 2000, from XXX of your
firm, in which you request the issuance of Technical Assistance
Advisement concerning the taxable status of prescription or
therapeutic pet food which is ordered and dispensed as treatment
of a diagnosed health disorder by or on the prescription of a
duly licensed veterinarian. The letter of August 3, 2000,
provides in part:

Our client ("Client") is in the business of operating
veterinary clinics primarily for pets in the State of
Florida. In addition to providing veterinary services, our
Client sells veterinary products to customers. Included in

the Client's sales of veterinary products are sales of
prescription or therapeutic pet food, specialized flea
products, medicines and other pet health related products.

The prescription or therapeutic pet food possesses curative
or remedial properties which are ordered and dispensed as
treatment for a diagnosed health disorder by or on the
prescription of a duly licensed veterinarian. The pet food
contains certain medicinal properties and is prescribed
only to pets with medical conditions. The manufacturers of
the prescription or therapeutic pet food require that the
food be dispensed by a licensed veterinarian. When the pet
is examined and the prescription or therapeutic pet food is
prescribed by the veterinary doctor, it is recorded in the
pet's medical records.

In addition, our Client also sells specialty flea
prevention supplies sold under the brand names Program,
Frontline and Advantage. Advantage (a topical solution)
and Program (an oral tablet) are applied to or consumed by
the pet and are available only through licensed practicing
veterinarians. Other products sold by Client include
medicines such as Heartgard for the prevention of
heartworm, which can only be obtained through a
prescription by a licensed veterinarian. When Advantage,
Program, Frontline and Heartgard are prescribed by the
doctor, they are recorded in the pet's medical records.

The letter of August 15, 2000, asks the following questions:

1. Are prescription or therapeutic pet food, and veterinary
   products such as Advantage and Program and substances like
   Heartgard considered medicines for Florida sales and use
   tax purposes?

2. Are the sales of prescription or therapeutic pet food,
   and veterinary products by licensed veterinarians to
   clients subject to sales tax in the State of Florida?

3. Should sales tax be paid by our Client to suppliers on
   purchases of prescription or therapeutic pet food, or

veterinarian products such as Advantage and Program and
substances like Heartgard?

4. Is the taxability of prescription or therapeutic pet
   food, and veterinary products affected by how the product
   is sold; (i.e. if the product is sold by a licensed
   veterinarian or if the product can be purchased off the
   shelf and not in connection with any veterinarian service)?

LAW

Section 212.08(2) provides in part:

Sales of drugs to or by physicians, dentists,
veterinarians, and hospitals in connection with medical
treatment are exempt....

(h) The purchase by a veterinarian of commonly recognized
substances possessing curative or remedial properties which
are ordered and dispensed as treatment for a diagnosed
health disorder by or on the prescription of a duly
licensed veterinarian, and which are applied to or consumed
by animals for alleviation of pain or the cure or
prevention of sickness, disease, or suffering are exempt.
Also exempt are the purchase by a veterinarian of
antiseptics, absorbent cotton, gauze for bandages, lotions,
vitamins, and worm remedies.

Rule 12A-1.020(13), F.A.C., provides:

A veterinarian's sales of prescription diets for dogs and
cats and of powders and sprays designed to prevent flea and
tick infestation are taxable, except commonly recognized
substances possessing curative or remedial properties which
are ordered and dispensed as treatment for a diagnosed
health disorder by or on the prescription of a duly
licensed veterinarian, which are applied to or consumed by
animals for alleviation of pain or the cure or prevention
of sickness, disease or suffering.

DISCUSSION

A veterinarian's sales of prescription diets for dogs and cats,
and of powders and sprays designed to prevent flea and tick
infestation, are exempt from tax when they are ordered and
dispensed by the veterinarian as part of treatment (or
prevention) of a particular health disorder, but taxable when
sold off the shelf, independent of treatment. Therefore, in
answer to your questions:

The sale of prescription or therapeutic pet food, and/or
veterinary products such as Advantage and Program and
substances like Heartgard are exempt when prescribed or
dispensed by a veterinarian for a diagnosed health
disorder.

The sales of prescription or therapeutic pet food, and
veterinary products possessing curative or remedial
properties which are consumed by animals for alleviation of
pain or the cure or prevention of sickness, disease, or
suffering, by licensed veterinarians in connection with
treatment of the animals, are exempt from tax. Off the
shelf type sales, without a written prescription, and
independent of treatment by the veterinarian, would be
taxable.

Florida sales and use tax should not be paid by the
veterinarian on the initial purchase of products that will
be resold to the customers. A resale certificate should be
issued to the supplier/vendor.

How the product is sold does affect the taxable status of
the product. An off the shelf type sale, which is
independent of a veterinarian's services, would be taxable,
unless the product itself is specifically exempt.

CLOSING STATEMENT

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S. which is binding on the department only
under facts and circumstances described in the request for this
advice as specified in s. 213.22, F.S. Our response is

predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., which are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Your name, address, and any other
details which might lead to identification of the taxpayer must
be deleted by the Department before disclosure. In an effort to
protect the confidentiality of such information, we request you
provide the undersigned with an edited copy of your request for
Technical Assistance Advisement, backup material and response
within fifteen days of the date of this advisement.

Sincerely,

Jonathan E. Swift
Tax Law Specialist
Technical Assistance and Dispute Resolution
(850) 922-4840

Control #42736