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