Iowa Sales Tax and Veterinary Services

 

Veterinary Services

Exempt:

The professional serices of a veterinarian are exempt from sales tax.

This applies to services performed on:

Laboratory Services

Exempt:

Grooming

Taxable:

Exempt:

Grooming for Both Veterinary and Cosmetic Reasons

The primary purpose for the grooming determines if sales tax should be collected.

Invoicing Cosmetic and Veterinary Services

When charges for cosmetic treatment and veterinary treatment are invoiced separately, sales tax is collected only on the cosmetic portion.

Animal Boarding or Training

Exempt:

Charges made for the boarding or training of animals are not subject to sales tax. The food and other supplies used when furnishing boarding or training services are taxable at the time of purchase.

Livestock Defined

Livestock raised for agricultural production means any domestic animal raised on a farm as a source of food or clothing.

Livestock

Not Livestock

Horses

Draft Horses

Draft horses are horses that pull loads, including loads in shows, or transport persons or property.

Purchases and sales of draft horses are exempt from tax. Draft horses include:

Racing Horses and Horses for Recreation

Purchases and sales of racing horses and those used for recreation are taxable.

Purchases by Veterinarians

Exempt Purchases

Purchases for resale, such as:

Items used in treating livestock raised for agricultural or dairy purposes or production for market, such as:

Exemption Certificates

When claiming exemption, the veterinarian must provide the seller with an Iowa Sales Tax Exemption Certificate (pdf).

If the veterinarian paid sales tax when purchasing items and later sold them, the veterinarian can adjust the sales tax return by entering the amount paid for the items as an “other” exemption on line 4.

Taxable Purchases

Supplies

Taxable supplies generally include:

Items used in treating companion pets and other animals (for hobby purposes)

Taxable items include:

Sales tax on these items should be paid to the seller. If the tax was not paid to the seller, it can be paid on line 2 of the veterinarian’s sales tax return as goods consumed.

Purchases from Out of State

Veterinarians may be responsible for consumer's use tax on items that were purchased outside of Iowa, for use in Iowa, and on which tax had not already been paid. See Iowa Consumer's Use Tax for additional details.

Tools, machinery, and equipment

A veterinarian’s purchase of tools, machinery, or equipment used to aid in performing veterinary services is subject to sales tax. However, they are exempt if primarily used for livestock raised for agricultural or dairy purposes or production for market. Veterinarians should be cautious in claiming this exemption.

Computers purchased by a veterinarian are taxable.

Purchases of Registered Vehicles

Vehicles subject to registration, or any implement customarily drawn by or attached to a registered vehicle, are subject to Iowa’s one-time registration fee. The fee is imposed on the purchase price at the rate of 5%. This includes camping trailers and horse trailers.

Sales by Veterinarians

Exempt

Items used in treating livestock raised for agricultural production include, but are not limited to:

Taxable

Items used in treating pets and animals other than livestock include, but are not limited to:

These should be billed separately from any veterinary services provided.

Local Option Sales Tax

Local option tax generally applies to the same goods and services that are subject to sales tax. The local option tax applies if the service or product is performed or delivered in a local option tax jurisdiction.

Products, services, or organizations that are exempt from sales tax are usually exempt from local option tax.

There is no special application or permit number for local option tax. It is paid on the sales tax return.

See Iowa Local Option Tax Information.

78-531 (04/23/12)