Separately stated charges for veterinary services are not taxable.

Examples include:

• Administering drugs
• Exam fees
• Lab tests
• Office visits
• Surgical procedures
• Vaccinations
• X-rays

In pet practice, all drugs and supplies used to provide a service are taxable to either the veterinarian or the customer.

Examples include:

• Bandages
• Food
• Medical supplies
• Medication
• Syringes
• Prescription drugs and food

Taxable to the Veterinarian

A single charge to administer a drug or supply to a pet is not taxable. Do not charge tax on the single charge.

The veterinarian must pay tax on the cost of the drugs and supplies used in the service.

Taxable to the Customer

Separately stated charges for drugs and supplies injected, fed, or applied to the pet are taxable to the customer.

Do not pay tax when you purchase these drugs and supplies. See Nontaxable Purchases.

Sales of pet care supplies are taxable.

Examples include:

• Flea collars
• Food
• Grooming aids
• Leashes
• Medication (over the counter and prescription)
• Travel cages
• Toys
• Vitamins

Rentals of travel cages or grooming equipment are taxable.

Pet grooming services are generally taxable. However, they are not taxable when performed by a veterinarian for:

• surgical preparation
• treating or preventing illness or disease

For more information about pet grooming services, see the Pet and Pet Care Industry Guide.

Boarding services are generally taxable (including boarding for animal control). However, these services are not taxable when the boarding is for hospitalization, observation, or other veterinary purposes.

Note: Giving medication to a pet that is boarded for non-medical reasons is not a veterinary purpose, and the boarding service is taxable.

The service to implant a microchip is not taxable. However, sales tax applies to the purchase of the microchip. You must do one of the following:

• Pay sales tax to your supplier when you buy the microchip.
• Buy the microchip exempt for resale and charge your customer tax when you sell it to them. (You must separately state the charge for the microchip on your invoice.)

When you sell equipment or other items used in your business, they may be subject to sales tax. For more information, see Isolated and Occasional Sales.

When you sell a taxable item, you must charge the state general sales tax and any local sales taxes that apply. Calculate tax based on the taxable sales price of the item (including any delivery charges).

Agricultural animals and horses qualify for the agricultural production exemption. Items used in agricultural production are exempt. Examples include:

• Bedding
• Drugs, including pills, antibiotics, injected drugs, ointments, and vaccines
• Feeds, feed additives, vitamins, and supplements
• Hay

Consumable materials and supplies for agricultural animals that are administered, attached, or become part of the animal are not taxable. Examples include:

• Animal markers
• Antiseptics
• Bandages
• Bull rings
• Calf boluses
• Capsules
• Disposable blades, needles, and syringes
• Ear Tags
• Horseshoes
• Insecticides
• Magnets
• Nitrogen and oxygen
• OB sleeves
• Semen
• Sutures
• Tattoo ink
• Teat dilators
• Tonics
• Udder cream

For more information, see Agricultural and Farming Industry Guide.

To claim this exemption, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Agricultural production exemption.

Consumable materials and supplies for horses are exempt from sales tax.

Machinery, equipment, tools, and other durable items used to breed, raise, shoe, groom, own, board, and keep horses are taxable.

Services provided specifically for horses are exempt from sales tax. To claim the exemption, the customer must give you a completed Form ST3, Certificate of Exemption.

Examples include:

• Boarding and grooming (medical and nonmedical)
• Horse shoeing
• Trimming horse hoofs

If you do not pay sales tax on a taxable purchase, then use tax is due. See the table below for specific examples.

Taxable items given to customers or donated to a charitable organization are taxable. You may pay tax when you buy the items or accrue use tax when you take the item out of inventory.  Examples include:

• Animal treats
• Carrying boxes
• Leashes
• Rabies tag

Use tax is not due when the items given away are from a vendor as a free sample or promotional item.

Charges for developing X-rays are taxable.

When you buy pet care items to sell to your customers, do not pay sales tax. Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Some materials and supplies used directly to provide taxable services (such as pet grooming and boarding) are exempt from sales tax.

Examples include:

• disposable bedding
• flea spray
• food
• shampoo

Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Note: Durable supplies and equipment for providing grooming and boarding services are taxable. See the Pets and Pet Services Industry Guide.

• 156, Veterinarians
• 297A.61, Definitions
  • subdivision 3, paragraph (g) (6) (v) Pet Grooming
  • subd. 3, para. (g) (6) (viii) lodging, board, and care services
• 297A.69, Agricultural Exemptions
  • subd.2, Materials consumed in agricultural production
  • subd. 6, Horses, related materials
• 297A.72, Exemption certificates
• 297A.77 Collection of Sales and Use Taxes

• 8130.5500, Agricultural and Industrial Production
• 8130.8700, Veterinarians

• 15-02, Care Services for Animals and Pet Grooming
• 02-20, Technical Corrections of Prior Revenue Notices
• 00-03, Exemptions: Materials Used or Consumed in Providing Taxable Services

• Computer Software
• Delivery Charges
• Detective and Security Services
• Laundry and Dry Cleaning Services
• Lawn and Garden Maintenance, Tree and Shrub Service
• Isolated and Occasional Sales
• Use Tax for Businesses

• Agricultural and Farming
• Building and Cleaning Maintenance
• Local Sales and Use Tax
• Pets and Pet Related Services
• Professional Services
• Retailers and Wholesalers