Bulletin Number
VTB 82-6
Tax Type
Retail Sales and Use Tax
Description
Vending Machines
Topic
Taxability of Persons and Transactions
Date Issued
06-01-1982
DATE: June 1, 1982
SUBJECT: Sales and Use Tax: Vending Machine Sales
The purpose of this bulletin is to announce a change in the application of sales tax to sales of tangible personal property through vending machines. Effective July 1, 1982, dealers engaged in the business of placing vending machines must report sales tax, at a rate of 5% (4% state, 1% local) computed on the cost price or manufactured cost of the tangible personal property sold. See § B2 of the enclosed Sales and Use Tax Policy Statement 82-1 for information on computing the tax.
This change does not apply to nonvending machine dealers such as service station operators, grocery stores, etc. who use vending machines at their places of business to sell merchandise. These dealers must continue to report tax at the rate of 4% of the gross taxable sales on the same return on which nonvending sales are reported (Form ST-9). Also, this change will not apply to dealers engaged in placing vending machines who contract exclusively with nonprofit organizations. See § C of Policy Statement 82-1 for information on the reporting requirements relating to these dealers.
Because of the new tax rate, a separate reporting system will be implemented for vending machine dealers. Beginning with the return filed for the month of July, tangible personal property sold through machines by dealers placing vending machines must be reported on Form VM-2; nonvending machine sales must be reported on Form ST-9. Vending machine dealers currently registered will automatically receive the appropriate reporting form at the end of July or September {for quarterly filers) and will maintain the same filing period (monthly or quarterly) as in the past. An example of a completed return is attached. New dealers should complete an application, Form VM-1 for each city or county in which they place machines. Form ST-l must be filed for each business location from which nonvending machine sales are made.
Please read the attached policy statement carefully as it contains specific information on this change. If you have any questions, please feel free to contact the Department of Taxation, P.O. Box 6-L, Richmond, Virginia 23282-0006 or telephone (804) 257-8037.
Tax Bulletins