Generally, a veterinarian is considered the end user and consumer of any drug or medication it uses in conducting its practice. Veterinarians must pay sales or use tax on the purchase price of the drugs and should not charge sales tax when reselling the drugs; they cannot use a resale certificate to make these purchases tax free.
However, drugs and medical instruments sold to, used by, or sold by veterinarians for the treatment of livestock are exempt from sales and use tax. The veterinarian must present a completed Streamlined Sales Tax Certificate of Exemption to its supplier. On Line 4 of the exemption certificate, the veterinarian should circle “Other” and include the explanation “veterinarian.” On Line 5 of the exemption certificate, the veterinarian should circle “Other” and include the explanation “purchasing livestock drugs and/or administration instruments.” See Important Notice 08-01 for more information.