Share |

Vending 

A taxpayer is given 3 options to manage their vending operations in Arkansas.  All vending machines must display an annually issued vending device decal, no matter which option is chosen.

  • Option 1 involves the payment of sales tax directly to the supplier of all merchandise that will be sold through the taxpayer’s vending machines. Food sold through a vending machine can qualify for taxation at the Reduced Food Tax rate (see Rule 2007-3).  No Sales/Use Tax permit is required if Option 1 is chosen. 

    After the opening of a Vending account, fiscal year decals are issued and placed on vending machines by the taxpayer.   Prior to the beginning of each new fiscal year, a decal order form is mailed out to all Vending accounts.  There are no fees for the annual Option 1 decals.
     
  • Option 2 involves reporting/paying the 7% Wholesale Vending Tax (see Rule 1995-2) each month on the merchandise to be sold through the taxpayer’s vending machines. Merchandise is purchased tax free under the sale for resale exemption.  A Sales/Use Tax Permit is required.  The taxpayer is required to file a monthly ET-1 Excise Tax Report and pay the appropriate tax.

    After the opening of a Vending account, fiscal year decals are requested, issued, and placed on vending machines by the taxpayer.   Prior to the beginning of each fiscal year, a decal order form is mailed out to all Vending accounts.  There are no fees for the annual Option 2 decals.
     
  • Option 3 involves exempting vending merchandise purchases from tax under the sale for resale exemption.   A Sales/Use Tax Permit is required.  The taxpayer is required to file a monthly ET-1 Excise Tax Report.

    After opening of a Vending account, fiscal year decals are purchased, issued, and placed on vending machines by the taxpayer.  The vending machine operator purchases Option 3 decals based on various factors – manual verses electric vending equipment, value of the vended goods, and bulk verses individually vended goods.   Prior to the beginning of each new fiscal year, a decal order form is mailed out to all Vending accounts. Decal costs are shown below.  

Option 3 category decal fees are:

Type of Vending Unit Dispenser Value Range Decal Fee
Individual Electric less than $0.25 $15.00
Individual Electric $0.25 or more $93.00
Bulk Electric or Manual $0.25 or less $2.50
Bulk Electric or Manual more than $0.25 $7.50
Individual Manual $0.25 or more $30.00

Applicable Statutes: AR Code Ann. §26-57-1001 et seq.; AR Code Ann. §26-57-1201 et seq.

 DFA Rule(s)

Forms
TitlePosted
VEN-AR | Merchandise Vending Additional Request02/07/2013
Instructions
TitlePosted
Notice to Vending Machine Operators02/25/2013
Statistics
TitlePosted
Vending Revenue 07/2005 to Current12/17/2014