Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2165 - Veterinarians

Current through Register Vol. 48, No. 28, July 12, 2024
a) Veterinarians as
				Servicemen
Veterinarians are engaged primarily in rendering service to
				  their clients and so are considered to be servicemen. As medical professionals
				  regulated under the Veterinary Medicine and Surgery Practice Act of 2004 (the
				  Act) [225
				  ILCS 115], they typically provide services to persons
				  with whom they have established a veterinarian-client-patient relationship
				  (VCPR) as defined in Section 3 of the Act. Under the Act, in order to maintain
				  a valid VCPR, a veterinarian must maintain sufficient knowledge of the animal
				  to initiate treatment and be readily available for follow-up. In addition, a
				  veterinarian must maintain adequate medical records, as provided in 68 Ill.
				  Adm. Code 1500.50(k), and
				  must comply with certification, licensure, professional conduct and
				  disciplinary requirements, including continuing education mandates, as provided
				  by the Act and 68 Ill. Adm. Code 1500. Services provided by veterinarians are
				  predicated upon compliance with these requirements.
b) Tax Liabilities of Veterinarians
In conducting a veterinary practice, veterinarians may incur
				  different types of tax, depending upon the nature of their activities. When
				  licensed veterinarians transfer tangible personal property to their clients as
				  a result of the practice of veterinary medicine, a service transaction occurs
				  that results in liability under the Service Occupation Tax Act. Veterinarians
				  also sometimes sell items of tangible personal property to clients or even to
				  the general public outside the scope of a service transaction. In such cases,
				  they are considered to be retailers engaged in the business of selling tangible
				  personal property at retail and incur retailers' occupation tax liability. In
				  addition, veterinarians incur use tax on items of tangible personal property
				  that are not transferred to their clients and instead are consumed by them in
				  the course of performing veterinary services. Subsections (c) through (e)
				  describe the requirements for a service transaction and define the tax
				  liability that results from these transactions. Also described are the
				  circumstances under which retailers' occupation tax and use tax liability are
				  incurred by veterinarians.
c) Service Transactions - Requirements -
				Taxation
1) In order for a transaction to be
				considered a service transaction for purposes of taxation, several requirements
				must first be met. Specifically:
A) A licensed
				veterinarian must have first established a valid VCPR with the service client,
				as defined in Section 3 of the Act;
B) A licensed veterinarian must have
				physically examined the animal;
C)
				A veterinary practice must maintain medical records demonstrating that the
				animal for whom tangible personal property was transferred was physically
				examined by a licensed veterinarian in that veterinary practice no more than 1
				year prior to the date on which tangible personal property was
				transferred;
D) The requirements of
				this subsection (c)(1) are not intended in any way to affect the requirements
				of the Act concerning the establishment or maintenance of a valid VCPR, but are
				intended only to establish the type of tax liability that will be incurred by a
				veterinary practice.