Welcome to the latest installment of our blog “What are the rules for NYS Sales tax for my profession?” In this blog we are highlighting another industry with a few of the broad guidelines to follow! Our hope is to not only provide helpful information for the business owners, but the consumers as well!
This blog focuses on Food and Beverages sold from Vending Machines.
An item that is generally taxable when sold in a food store is also taxable when sold in a vending machine. In addition, an item that is exempt from sales tax when sold in a food store is also exempt when sold in a vending machine. There are some exceptions to the general rule however.
The exceptions to the general rule regarding sales tax on food and beverages sold in vending machines are as follows:
- · Hot beverages that are sold from a vending machine are always exempt from sales tax.
- · Certain items that are taxable when sold by food stores are exempt when they are sold from a vending machine for $1.50 or less.
Taxable food and beverage items when sold from a vending machine are as follows:
- · Bottled water
- · Any food that is heated by or kept warm in the vending machine
Any unheated foods and unheated beverages are exempt from sales tax when sold from vending machines.
The certain items that are taxable when sold by food stores, but are exempt when sold for $1.50 or less from a vending machine are:
- · Candy and confectionery
- · Soda
If sold for more than $1.50, the above items are taxable.
If taxable food or beverages are sold, sales tax must be collected. In order to do this, the amount of the sales tax should be included in the selling price of the item and the sales tax rate in the local taxing jurisdiction where the machines are located should be used.
This is just a brief overview of the sales tax laws regarding the sale of food and beverages sold from vending machines. Feel free to give our office a call for more information.
By Renee Greenspan