California Sales Tax for Veterinarians - Feed Sales

Food Animals

Your sale or use of feed for food animals is not subject to tax.

Food animals are considered to be those animals, birds, or insects commonly used to produce food items that people eat, such as meat products, dairy products, eggs, and honey.

Examples include cattle, chickens, sheep, goats, quail, ostriches, turkeys, and bees.

This tax exemption applies regardless of the method you use to bill your customer.

Feed, for sales and use tax purposes, includes products such as grain, hay, seed, and similar products.

It does not include sand, charcoal, granite grit, or sulfur.

Exemption Certificate

In addition, your purchases of feed for food animals are not taxable.

If you sell feed for food animals and that feed can also be used for nonfood animals, you may need to obtain a feed exemption certificate from the purchaser (see sample on next slide).

However, a certificate is not required for sales of:

Two or fewer standard sacks of grain, and/or four or fewer bales of hay (for use as feed)

Feed bearing a manufacturer’s label indicating that it is intended for food animals

Non-food Animals

The sale of feed for nonfood animals that will be sold by the purchaser in the regular course of business is not subject to tax.

In addition, feed sales to breeders who will sell their nonfood animals’ offspring in the regular course of business are not taxable.

You should obtain a feed exemption certificate from the purchaser to substantiate these sales.

Source: California Department of Tax & Fee Administration (CDTFA)