Effective July 1, 2018, a veterinary services tax was passed in Kentucky as part of a legislative budget and tax bill. This bill includes a 6% tax on all services performed by veterinarians and veterinary practices in the state of Kentucky. This 6% veterinary services tax affects all Kentucky veterinarians and practices performing veterinary services for small, or, companion animal. Equine and food animal services (cattle etc..) are exempt at this time.
So, what does this mean for veterinarians, veterinary clinics and practices in Kentucky? In brief, it means that, effective July 1, all services are taxable and doctors and their business must comply by implementing the mandatory 6% sales tax.
Equine and food animal veterinary services are not affected by this new tax, but all small animal and companion animal service, including some areas of 501(c)3 services are affected.
For a complete list of answers related to the new 6% Kentucky veterinary tax for specific services, equipment, goods, labs and more, please visit taxanswers.ky.gov.
Though similar bills have been proposed, but ultimately defeated in states such as Ohio, Georgia and more, the 6% veterinary services tax is effective July 1, 2018 in Kentucky.
We’re encouraging all our Kentucky veterinary partner practices to reach out to the KVMA online. Stay in touch with the latest postings on the development of this new veterinary services tax. You can email the Kentucky Veterinary association at info@kvma.org
Adding the 6% sales tax to all these items can be daunting, not to mention, actually time consuming, however, this is where your cloud veterinary software shines. Adding this 6% sales tax for Kentucky practice partners can be done in 5 steps with Hippo Manager.
From the management screen, choose to bulk edit items to apply the 6% tax.
Add in the applicable tax amount (6%) and voila!
Read or download our quick start guide on adding the 6% Kentucky veterinary services tax at your practice. Or, we can help you directly! All our Kentucky practice partners can access our unlimited training and support by contacting our team, here, or by calling 877-819-0159.
What areas are taxable, I’m a non-profit but I perform veterinary services, what about goods? All these are great questions and can be answered, here. In Summary, however, all veterinary services must include the 6% tax including those performed at a non-profit clinic.
Hippo Manager is here to help our veterinary practice partners do business, focus less on software and more on patient care. We’ll help you with the tricky stuff, take advantage of our unlimited training and support available with all subscriptions. It’s times like these when the veterinary industry can get a bit confusing and we’re always here to help. Start a free no-obligations trial to see for yourself how Hippo Manager does more.
Email us: info@hippomanager.com or call 877-819-0159