Sales Tax Guidelines for Pet Boarding and Grooming Services
Understanding the tax obligations associated with these services is crucial for businesses in the pet care industry. Let’s delve into the details and provide you with valuable insights from the Minnesota Department of Revenue.
Boarding and Lodging Services:
In Minnesota, charges for pet boarding, lodging, and care services are generally subject to sales tax. This means that businesses providing these services must charge and collect sales tax from their customers. Here are some examples of taxable boarding and lodging services:
- Administering drugs or medicines to pets other than by a licensed veterinarian
- Caring for an animal at a care provider’s home
- Caring for an animal at the animal owner’s home
- Impound services for animal control (including lodging, boarding, and care services)
- Picking up pet droppings
- Placement fees for an animal needing boarding or care services
- Transportation charges
- Walking, exercising, or providing entertainment for animals
Grooming Services:
Pet grooming services are also subject to sales tax in Minnesota. This includes services such as clipping, nail cutting, shampooing, trimming, and other pet grooming services. However, it’s important to note that grooming services for service animals or any animals kept for utility or profit are exempt from sales tax.
Understanding the sales tax implications of boarding and grooming services is crucial for businesses in the pet care industry. In this blog post, we have outlined the guidelines provided by the Minnesota Department of Revenue regarding the taxability of these services.
For more detailed and specific information, we recommend referring to the official resources and guidelines provided by the Minnesota Department of Revenue Sales of Boarding and Grooming Services | Minnesota Department of Revenue (state.mn.us).
Get in touch with our experts at Prudent Accountants and stay informed and compliant with tax regulations to ensure accurate reporting and a smooth operation of your pet care business.