Neem leaf powder or bark powder can be given to dogs as a supplement. It's good for them just as it is good for us.
Neem leaf or bark extracts should not be taken internally and not given to dogs. Accidental traces should not do harm unless the dog has some kind of allergic reaction to it.
I wouldn't add neem oil to a dog's feed, but if they accidentally ingest some it should not hurt them.
Pure, raw neem oil is not a poison. There have been occasional serious complications when neem oil was given to children with fevers. There have also been some laboratory studies where animals were force fed large amounts of neem oil over an extended period of time and showed some negative side effects.
Hence the warning to not take neem oil internally. (There have also been studies where animals ingested large amounts over a long time and had no side effects whatsoever...)
Neem oil is certainly less dangerous than the ingredients in your average dog shampoo or any chemicals you may use to treat fleas or ticks. Don't worry if a dog licks a bit of neem oil. It won't hurt.
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Neem should not be taken by anyone who is pregnant or trying to conceive. Neem contains compounds similar to those in aspirin and must never be used to treat children with fevers. It should not be taken by people with known allergies to aspirin and aspirin like substances. Neem oil should not be taken internally.
