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Generally, there are two classifications of B&O tax for veterinary businesses: Service and Other Activities classification and the Retailing classification. Retail sales tax also applies on retail sales unless there is a specific exemption.
The Service and Other Activities B&O tax classification applies to the gross income derived from Veterinary services.
The Retailing classification of the B&O tax applies to the gross income from the sale of drugs, medicines, other substances, or items of tangible personal property to consumers when the sale is not included in the veterinary services. The Retailing classification applies only when the veterinarian does not administer the drug, medicine, other substance, or item. In cases where the veterinarian only administers part of the drug, medicine, other substance, or item of tangible personal property to the animal, with further administration to be completed by the customer, the veterinarian must separately list the charge on the bill and collect retail sales tax.
Retail sales tax applies to all sales of animal care products to consumers that are not included in the definition of veterinary services discussed in the Definitions section.
