Covetrus is considered a marketplace facilitator for transactions processed through Covetrus(R) vRxProTM. This means Covetrus is responsible for both collecting and remitting sales taxes collected from pet and horse owners. Reporting will be available to meet practices' needs, but they SHOULD NOT remit sales tax collected from pet owners on the covetruspharmacy.com storefront.
Many states require Marketplace Sellers to report facilitated sales on their sales tax returns but to also include them as deductions.
Practices should work with their accountants or tax professionals to understand sales and use tax filing requirements in their states applicable to Marketplace Sellers.
Please speak to a qualified tax professional if you are seeking advice about your specific business or tax circumstances. Covetrus®️ does not provide professional accounting services.
What is a Marketplace Facilitator?
In general, a Marketplace Facilitator operates an electronic marketplace over which sales of third-party Sellers’ products are facilitated. The facilitator collects payment from the end-consumer and transmits all or part of that payment to the Seller (the Practice).
Covetrus is operating an online, retail marketplace (platform) where products are sold and shipped directly to pet owners. Covetrus collects payment from pet owners as the merchant of record and passes the appropriate portion to the Practice pursuant to Covetrus’s contract with the Practice.
Please speak to a qualified tax professional if you are seeking advice about your specific business or tax circumstances. Covetrus®️ does not provide professional accounting services.
My practice is a "wholesale" practice, what does this mean for me?
Practices located in New York, South Carolina, or Wisconsin are required to be “wholesale” practices. In these states, Covetrus will collect tax from the Practice and remit it to the appropriate taxing jurisdiction.
Please speak to a qualified tax professional if you are seeking advice about your specific business or tax circumstances. Covetrus®️ does not provide professional accounting services.
What tax documentation do I need to provide to Covetrus?
Covetrus requests exemption certificate documentation from practices as appropriate (except those practices located in New York, South Carolina, and Wisconsin). This request is being made for Covetrus records to support the exempt nature of the sale from Covetrus to the practice, for resale to the client.
In certain states, where veterinarians are not required to obtain resale licenses for sales tax purposes, (ex. Tennessee), and practices are not already registered, Covetrus is not requiring practices to register and submit a resale license number.
Please speak to a qualified tax professional if you are seeking advice about your specific business or tax circumstances. Covetrus®️ does not provide professional accounting services.
How do I know what’s being collected and remitted?
Users with Reporting Admin permissions have access to Sales Tax reports monthly and quarterly under the Reporting section of vRxPro.
This report provides a summary of total sales and taxes due by jurisdiction. The dollar amount in the bottom right corner of each subsection will show you the amount collected and paid to each jurisdiction, with a grand total on the final page.
Covetrus relies on the latest tax information to determine if transactions are subject to sales or use tax, however tax legislation and rates are constantly being updated. Covetrus is not authorized to give tax advice and we encourage practices with sales tax questions to consult a professional tax advisor, accountant, or local tax authority prior to their Covetrus platform deployment and use.