Frequently Asked Questions
What is the financial flow for auto refill product sales?
VRS bills and collects 100% of the revenue from pet owners on behalf of the VRS Partner. VRS will bill the VRS Partner for the wholesale cost of the VRS product and for services performed (the combined charges will approximately be 80% of the sale). VRS will then release the retained revenue (approximately 20% of the sale) to the VRS Partner.
VRS Partners receive approximately 20% of the revenue from the pet owner.
What are the benefits of the VRS Business model?
Veterinarian Recommended Solutions was founded on two core concepts. First, there is a compelling need for high quality veterinary products, such as nutritional supplements, foods, medications, and other items, that are research-based, pure and safe, and have been deliberately crafted, carefully reviewed, and approved by well-qualified veterinarians. Second, the essential relationship between veterinarians and their clients is being eroded by the alarming trend in which nutritional supplements, foods, medications, and other items that were traditionally purchased directly from veterinarians, are instead being purchased on-line or from "big box" retailers.
Our business model allows our partner veterinarians to sell high-quality VRS Products directly to their clients, with VRS supporting the sale by handling inventory and shipment, billing and collecting on behalf of the partner veterinarian. VRS also provides its Pet Health Coaches to support the customers who buy VRS Products.
Since I will be recording 100% of the revenue from the sale of auto-refilled VRS Products to my clients, and paying approximately 80% of it back to VRS for the wholesale cost of goods and a service fee, what is my my tax liability?
Taxation is a complex subject and the tax treatment of revenue related to the sale of VRS Products may vary considerably based on the state and even the municipality in which your practice is located. We suggest that you check with your accountant or tax advisor to determine how to account for the sale of VRS Products to your clients.
You may be responsible for the payment of local or state sales or other taxes in connection with your sale of VRS Products, through VRS, to your clients and customers. VRS will collect state, local and sales tax, as applicable, in connection with the sale of VRS Products, through VRS, to your clients and customers, and will pass all such amounts on to you for payment to the appropriate taxing authorities. VRS will give you the needed information to file any sales or other tax returns with the applicable local and state taxing authorities. VRS will not, however, be responsible for the filing of any such local or state sales tax returns.
Most of our partner veterinarians already sell certain products to their clients in their practice. The revenue from sales of auto-refilled VRS Products is likely to be treated similarly to the revenue from those other sales. VRS will provide its partner veterinarians with regular reports containing all the information they will need to account for both the "top line" revenue from the sale of auto-refilled VRS Products to their clients, and the related wholesale cost of goods and service fees paid to VRS related to those sales. You and your accountant will have all the information you need to properly account for the revenues and expenses related to the sale of auto-refilled VRS Products.
If it's my sale and the client ends up returning an auto-refill bottle for a refund, who reimburses the client?
VRS will reimburse the client for eligible returns, on behalf of the partner veterinarian, and will then make the necessary adjustments to the reported revenue and charges for the veterinarian.
Who collects the sales tax and remits it to the state if this is "my sale"?
VRS will report to each partner veterinarian the total sales and revenues attributable to the sales of VRS Products managed or conducted by VRS on behalf of the partner veterinarian. It will be the responsibility of each veterinarian to consult with their accountant or tax adviser and to report revenues and pay taxes, as may be necessary under applicable law.