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MAINE REVENUE SERVICES

SALES, FUEL & SPECIAL TAX DIVISION

SALES TAX INSTRUCTIONAL BULLETIN NO. 51

VETERINARIANS

This bulletin is intended solely as advice to assist persons in determining, exercising or

complying with their legal rights, duties or privileges.

It contains general and specific

information of interest as well as interpretations and determinations by Maine Revenue Services

regarding issues commonly faced by your business. Portions of the Sales and Use Tax Law

referred to in this bulletin can be found at the end of the bulletin in Attachment #1.

The following instructions relate to sales and purchases by veterinarians and other

providers of animal care and medications. The Sales and Use Tax Law requires persons engaged

in the business of selling tangible personal property or taxable services to register as sellers, to

add the sales tax to the sale price on all sales not exempt under law, and to report and pay tax to

the State on their total taxable sales and total taxable purchases upon which the Maine sales tax

was not paid to the vendor.

1. TAXABLE SALES

A. Tangible Personal Property. Veterinarians are engaged in selling tangible personal

property. Some examples of products that would be subject to Maine sales tax would

include, but not be limited to, the following:

Pet food

Insecticides & Flea products Collars

Leashes

Harnesses

Vitamins & Supplements

Grooming tools

Shampoo

Some products that may primarily be used by veterinarians in providing a service may

also occasionally be sold directly to a customer in the form of tangible personal property. If

such supplies/products, i.e. bandages, dressings, are sold directly to the customer for use on a

pet, the sale would be subject to sales tax.

B. Medicines. Medicine is tangible personal property. Veterinarians are typically engaged

in using medicines when making an injection in the course of treatment and in selling both

non-prescription and prescription drugs to customers. (For a discussion on use tax due on

medicines used in the performance of a service, see Taxable Purchases later in this bulletin.)

The sale of medicine or supplies to a customer who will administer the item to or for a

pet is subject to sales tax. This includes both non-prescription and prescription drugs.

C. Services that are Part of Taxable Sale Price. Most services that are sold in Maine are

not subject to the sales tax. (See services under Exemptions) However, there are some

charges for services, when imposed in conjunction with the sale of taxable items, that would

be subject to tax as part of the “sale price” of the product being sold. Such charges

commonly encountered would include, administrative fees, processing fees, dispensing fees,

Sales Tax Instructional Bulletin No. 51 - Maine Revenue Services Sales, Fuel & Special Tax Division