ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.186. Veterinarians.
(1) Veterinarians use and consume medicines, equipment, and supplies
in the rendering of professional services. When used by veterinarians who
are not licensed to collect sales tax on their retail sales, these medicines,
equipment and supplies are taxable at the time of purchase by the veterinarian.
(2) Veterinarians in many instances make retail sales of medicines,
vaccines, and other supplies. Veterinarians who make retail sales shall
apply for and obtain a sales tax license. Further, these veterinarians
shall collect sales tax from their customers and remit the tax to the Department
of Revenue.
(3) Veterinarians who have obtained a sales tax license shall
purchase all medicines, equipment, and supplies from veterinarian supply houses
tax-free. Those items purchased tax-free and used or consumed by the veterinarian
shall be reported as a withdrawal by the veterinarian and the sales tax thereon
remitted directly to the Department of Revenue. The tax on withdrawals shall
be computed on the cost of the item purchased tax-free from the veterinarian
supply house. The veterinarian shall collect sales tax from the customer on
those items purchased tax-free from veterinarian supply houses and resold by
the veterinarian. The tax on retail sales by veterinarians shall be computed
on the selling price to the customer.
(4) With respect to purchases from suppliers other than veterinarian
supply houses, veterinarians who have obtained a sales tax license shall
pay tax to the supplier on items purchased for use or consumption and not
for resale. Examples of such items include, but are not limited to, equipment,
office supplies, and office furniture. Items purchased for resale from
suppliers other than veterinarian supply houses shall be purchased tax-free
and the veterinarian shall compute and pay sales tax on withdrawals and
collect and remit sales tax on retail sales to customers.
(5) The sale, use, storage, or consumption of all antibiotics, drugs,
serums, vaccines, and other medications used in the commercial production
and growing of fish, livestock, and poultry is exempt from sales and use
tax. This exemption does not apply to medications for dogs, cats, or any
other animal which does not qualify as fish, livestock, or poultry. When
antibiotics, drugs, serums, vaccines, and other medications are used for
both taxable and exempt purposes, the veterinarian must maintain adequate
records to substantiate the exempt usage; otherwise tax shall be due on
all antibiotics, drugs, serums, vaccines, and other medications regardless
of how used. (Sections 40-23- 4(a)(29) and 40-23-62(29)) (Amended November
3, 1980, readopted through APA effective October 1, 1982, amended January
19, 1998)
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