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Vending Machine Requirements

This page provides useful tax information for businesses operating vending machines.

	
		

Overview

Sales of food and beverages from vending machines are generally taxed in the same manner as sales of the same items in food stores:

• items that are taxable when sold in a food store are taxable when sold from a vending machine;
• items that are exempt from sales tax when sold in a food store are exempt when sold from a vending machine.

However, there are two exceptions to this general rule:

• hot beverages sold from a vending machine are always exempt;
• 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.

If you sell any taxable food or beverages by vending machine, you must register for sales tax, collect sales tax, and report your sales as instructed on your New York State sales tax returns.

For additional information/Sponsor Agency:

Taxation and Finance, Department of

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