Can a chiropractor sell or dispense vitamins to patients tax-free in Texas?

Plain-English summary

A taxpayer asked the Comptroller about the sales tax treatment of vitamins sold or dispensed by chiropractors. The Comptroller confirmed a chiropractor is a licensed practitioner of the healing arts and may sell or dispense vitamins tax-free, applying Rule 3.284(b)(2)'s drugs and medicines exemption. To document each exempt sale, the chiropractor must complete an exemption certificate (a template was enclosed with the letter, which could be copied as needed) stating that the vitamins are sold or dispensed under the chiropractor's own oral or written prescription, and keep that certificate in the practice's records.

What this means for you

Chiropractors selling or dispensing vitamins to patients

You can sell or dispense vitamins tax-free as a licensed healing-arts practitioner, but you must complete and retain a proper exemption certificate for each exempt sale, documenting that the vitamins were sold/dispensed under your own oral or written prescription.

Accountants and tax professionals advising chiropractic practices

This is a narrow, specific confirmation building on the broader Rule 3.284(b)(2) drugs-and-medicines exemption already applied to other licensed healing-arts practitioners (doctors, dentists, veterinarians) elsewhere in this corpus — vitamins specifically qualify as a "drug or medicine" for this purpose, but the exemption certificate paperwork requirement still applies.

Common questions

Q: Can a chiropractor sell vitamins tax-free in Texas?
A: Yes — chiropractors are licensed practitioners of the healing arts and may sell or dispense vitamins tax-free under Rule 3.284(b)(2).

Q: What paperwork does the chiropractor need to keep for each exempt vitamin sale?
A: A completed exemption certificate stating the vitamins are sold or dispensed under the chiropractor's own oral or written prescription, kept in the practice's records.

Q: Can I rely on this letter for my own chiropractic practice?
A: No. It's based on the facts submitted, and the letter notes other facts, though similar, may yield different results.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(b)(2) (drugs and medicines exemption for licensed healing-arts practitioners)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9803316L

Original ruling text

March 11, 1998

Dear Ms. **:

Thank you for your March 9th letter to John Fitzgibbons concerning vitamins
sold or dispensed by chiropractors.

A chiropractor is a licensed practitioner of the healing arts. Therefore, a
chiropractor may sell or dispense vitamins tax free. See subsection (b)(2) of
enclosed Rule 3.284 on drugs and medicines. The chiropractor must complete an
exemption certificate stating that the vitamins will be sold or dispensed under
his oral or written prescription. Keep the exemption certificate in your
records to document the exempt sale. An exemption certificate is enclosed and
may be copied as needed.

This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Policy Division