(a) Permitted business.

1. (1)

   1. (A)

(i) A veterinarian holding a sales tax permit may purchase tangible personal property exempt from sales or use tax as a sale for resale.

1. (ii) See Arkansas Gross Receipts Tax Rule, 26 CAR § 30-.

   1. (B) As tangible personal property used, consumed, or furnished in the nontaxable practice of veterinary medicine is withdrawn from stock, the veterinarian is required to self-assess and pay sales or use tax based upon the purchase price of the property.
   2. (C) When tangible personal property is sold at retail, the veterinarian must collect sales tax from the customer based upon the sales price. Example: A veterinarian purchases a case of a fast-acting flea preventative. Some of the flea preventative will be used to treat animals receiving medical care at the veterinary clinic and some of the flea preventative will be sold to customers at retail. The veterinarian should purchase the flea preventative exempt from tax. Any of the flea preventative that is used or consumed by the veterinarian should be treated as a withdrawal from stock and the veterinarian is required to self-assess, report, and pay tax on the purchase price of the flea preventative. The veterinarian is required to collect sales tax on the sales price of the flea preventative when it is sold at retail.
2. (2) A veterinarian may pay sales or use tax on purchases of tangible personal property used or consumed in the nontaxable practice of veterinary medicine at the time of purchase.

(b) Nonpermitted business.

1. (1) If a veterinarian does not have a sales tax permit, the veterinarian is required to pay sales or use tax at the time of purchase.
2. (2) Tangible personal property purchased from an out-of-state vendor for use, storage, distribution, or consumption in the performance of veterinary services is subject to Arkansas use tax.
3. (3) If the vendor does not collect tax at the time of sale, the veterinarian is required to report and remit Arkansas use tax on the purchase price of the tangible personal property.

4. (4)

   1. (A) A credit for sales tax paid in another state is given to offset Arkansas use tax if the other state requires the tax to be paid.

   2. (B) See Arkansas Compensating Use Tax Rule, 26 CAR §§ 30-.

      1. (c) Sales of tangible personal property such as office supplies and equipment, surgical instruments, or operating supplies to a veterinarian are taxable sales and the veterinarian is required to pay sales or use tax on the purchase of these items.