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)
Title | Posted |
2007-3 Special Rules for Sales of Food and Food Ingredients and Prepared Food | 02/15/2018 |
1995-2 Vending Goods Wholesale Tax | 08/26/2010 |
Forms
Title | Posted |
VEN-AR | Merchandise Vending Additional Request | 07/25/2023 |
Statistics
Title | Posted |
Vending Revenue 07/2006 to Current | 07/03/2017 |
Vending Revenue FYE 2018 | 07/03/2018 |
Vending Revenue FYE 2019 | 07/05/2019 |
Vending Revenue FYE 2020 | 07/02/2020 |
Vending Revenue FYE 2021 | 07/09/2021 |
Vending Revenue FYE 2022 | 07/01/2022 |
Vending Revenue FYE 2023 | 07/06/2023 |
Vending Revenue FYE 2024 | 07/01/2024 |
Vending Revenue FYE 2025 | 08/01/2024 |