Vending Machine Licenses are an important element of keeping your business above board.
When considering starting a vending machine business, many people fail to consider the vending machine license one must obtain for their business. The truth is most states require vending machine route operators to obtain both a business license and the permits.
There are several mandatory licenses to operate a vending machine business, including a machine license and a sales tax receipt certificate. Depending upon the items you wish to place inside the machines, there may be additional licenses. Soda and snacks, candy, milk products, and tobacco all have different regulations and local ordinances may vary from the state ordinances. Failure to comply with these can mean revocation of your license.
Vending machine sales are eligible for tax in the same fashion as food items in more traditional stores. If an item would be exempt when sold in a store, the same would be true for a vending machine. However, if it is eligible to taxes in a brick and mortar store, it will also be eligible for tax in your machines. The only exceptions from this rule are:
Hot beverages sold from a vending machine are always exempt. Certain items that are taxable when sold by food stores are exempt when sold from a vending machine for $1.50 or less. When you file your sales tax returns you’ll need to separate the number of sales you made from the sales tax you collected.
Before Obtaining Your Vending Machine License
Consider the location where you will be placing your machines. If they will be in schools, regulations may be different than if you are placing them in commercial areas.
To run your business legally it is important to not only know your local regulations. Adhere to them carefully, ensuring your business is above board and reproach.
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