Virginia Tax Commissioner Issues Letter Ruling on Sales Tax Exemption for Veterinary Drugs, Medical Devices

The Virginia Tax Commissioner issued a letter ruling stating that animal vaccines purchased by veterinarians are exempt from retail sales and use tax, provided they meet the legal definition of drugs. In contrast, regenerative medical devices utilized for processing blood or bone marrow, which do not contain prescription medication, are not eligible for this exemption and will incur sales tax. This ruling reinforces the strict interpretation of tax exemptions as mandated by Virginia law, which remained effective until July 1, 2025, for specific veterinary purchases. [Va. Dep’t of Tax’n, Ruling of the Comm’r, No. PD 25-74, 06/04/25]

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