bigtay6187 Posted July 30, 2010 Share Posted July 30, 2010 Hi Everyone, In my quest to make sure I'm 100% legal I was searching the Texas Comptroller website and I thought this info would be helpful, d) Vending machine sales. Food, candy, and soft drinks sold through vending machines are taxable. The sales tax is determined as follows: (1) Soft drink and candy vending machine sales. The vending machine operator must remit sales tax on the total gross receipts from sales of soft drinks and candy without any deduction for spoilage, waste, or other losses. (2) Food product vending machine sales. The vending machine operator must remit sales tax on 50% of the total gross receipts from sales of food products without any deduction for spoilage, waste, or other losses. Examples of food products include chips, crackers, pretzels, milk, tea, coffee, and juice if more than 50% vegetable or fruit juice by volume. (3) Water, including bottled water, spring water, sparkling water, or mineral water, is exempt from sales tax. A vending machine operator is not required to remit sales tax on the receipts from sales of water. Flavored water (carbonated or non-carbonated) is a soft drink and a vending machine operator must remit tax on the total gross receipts for vending machines sales of flavored water. (4) A vending machine operator must place a sign on the vending machine stating that the vended price includes sales tax. If sales tax is included in the price of the taxable item, the vending machine operator may back out the amount of the tax before reporting the taxable sales on his sales tax return. See §3.328 of this title (relating to Optional Reporting Methods for Grocers and Other Vendors). (e) Bulk vending machine sales. Food, gum, candy, and toys sold for $0.50 or less from a bulk vending machine, as defined in subsection (a)(2) of this section, are exempt from sales tax. A bulk vending machine operator that has only exempt bulk vending machine sales may choose to obtain a sales tax permit and file sales tax returns so that the operator is able to purchase the gum, candy, or toys tax free for resale by giving the supplier a properly completed resale certificate. If a vending machine operator has both taxable vending machine receipts as explained in subsection (d) of this section, and exempt bulk vending machine sales as explained in this subsection, the operator must keep detailed records showing which items are dispensed from the bulk vending machines. So it seems to me that as long as I'm under 50 cents per vend I'm fine. Once I begin to vend at 75 though I need to register to get a Tax id number though? I went ahead and registered for it so I can deduct the tax that I pay on gumballs and such that i buy from sams. If any of this infomation is incorrect someone feel free to chime in, this is my first business so I'm still trying to figure everything out. Thanks, Bigtay Link to comment Share on other sites More sharing options...
Emrys Posted August 5, 2010 Share Posted August 5, 2010 You got everything right except for one thing. Since you don't charge sales tax for items 50 cents and under, you can't buy them tax exempt. I'm in Texas too, just went fully legal a couple days ago. Link to comment Share on other sites More sharing options...
eddiebauervending Posted August 5, 2010 Share Posted August 5, 2010 You got everything right except for one thing. Since you don't charge sales tax for items 50 cents and under, you can't buy them tax exempt. I'm in Texas too, just went fully legal a couple days ago. good info cats Link to comment Share on other sites More sharing options...
Agapevending Posted January 24, 2011 Share Posted January 24, 2011 add your sales tax to your income tax each year keep all receipts. The only thing you will be taxed on is a personal business property tax. but only if you are a registered bus. in your county. For example I am in Bousque county just north of Waco. i have two machines in my county so I have to report those two machines. Sense they are bulk and only worth a sale price if i was to sell them around a 100 dollars I probably won't even have to pay that. But If I do it won't be much. what part of TX are you in. There has been some on here really close to Austin. Is that you Link to comment Share on other sites More sharing options...
mwalker Posted March 22, 2016 Share Posted March 22, 2016 I'm extremely new to this, and just picked up 2 different quarter candy vending machines to have fun with my kid, and help teach him some lessons. Since I'm only doing $.25 vending I should be exempt from sales tax under section e) above... I'm a little confused to this statement, though, since I've never filed taxes as a business like this before...what is the advantage, or disadvantage, of doing this? Link to comment Share on other sites More sharing options...
TexasFreemason Posted March 30, 2016 Share Posted March 30, 2016 I'm extremely new to this, and just picked up 2 different quarter candy vending machines to have fun with my kid, and help teach him some lessons. Since I'm only doing $.25 vending I should be exempt from sales tax under section e) above... I'm a little confused to this statement, though, since I've never filed taxes as a business like this before...what is the advantage, or disadvantage, of doing this? You are completely exempt from sales tax unless you get above .50. Link to comment Share on other sites More sharing options...
ActivelyDormant Posted April 4, 2017 Share Posted April 4, 2017 Hello fellow Texans, I'm new to this vending machine world and was hoping someone could help out with the legal side. I'm going to be placing a handful of 25 cent machines around Austin and would like to know what is required in order to start. Below are a few questions I have. Feel free to answer all or some. 1. Going through some research I've found that 50 cent machines and below are tax exempt but what and how does this come into play when you are reporting your earnings at the end of the year? 2. Do I have to get a business license in order to start this small venture? 3. Do I have to get a permit for each machine? 4. Are there any quarterly taxes that need to be paid? I'm not looking to build this into a big business, rather I'm looking to grow this into a nice steady stream of passive income. Any help would be appreciated and please feel free to chime in on anything else that I didn't mention. Thanks! Link to comment Share on other sites More sharing options...
mrshadetrees Posted October 4, 2018 Share Posted October 4, 2018 The information above is most appreciated. Related question/statement: In order to bulk candy vend in Austin, TX, I need... 1. DBA etc. 2. a coin-operated machine business license (or supposed TX vendor's license) - $200 - https://comptroller.texas.gov/forms/ap-147.pdf 3. a Food & Beverage Vending Machine Operator Permit for Austin, TX - $110 which is a different application than Austin's Vending Machine Permit Application, I'm assuming I need the former, this one http://www.austintexas.gov/sites/default/files/files/Health/Environmental/Food/vendingmachinepermitapp_2_14_13.pdf Is this correct? I plan on calling around to be sure before submitting any online forms/money. Thank you in advance. Link to comment Share on other sites More sharing options...
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