Sales from Vending Machines Taxable in Missouri

A Missouri Letter Ruling addressing vending machine sales found that the sales were taxable as sales of tangible personal property. The taxpayer had a vending machine supplied by a wholesale vendor. The taxpayer makes no payments to the wholesale vendor for the machine, but is contractually required to purchase all items sold in the machine through the vendor. The sales made by the vending machine were subject to state and local taxes at a basis of 135% of the net invoice price paid to the wholesale vendor for products sold in the machine. (Letter Ruling No. LR3587, Missouri Department of Revenue, January 2, 2007)

Posted on April 20, 2007