Is Vending Machine Income Taxable?

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We all know that businesses need to pay taxes to the government. Any business owner has the duty to report all revenue and to pay the corresponding tax. A vending machine business is a business like any other, so it only follows that vending machine income is taxable.

It’s no secret that most vending machines earn by way of coins and small bills. Of course, many automats now accept cards and other digital payment methods. However, the prices of typical items, like snacks or beverages, are still generally low. Because of this, many people mistakenly think that vending machine income is tax-free. That is not true at all because income is income no matter how big or small it is, or what form it comes in. In other words, it is clear without any doubt that income is indeed taxable.

Is Vending Machine Income Taxable?

Is It Absolutely Necessary to Pay Taxes on Vending Machine Sales?

Many years ago, vending machines only accepted coins as payment. In such a case, there is no paper trail, and there is really no way for an auditor to verify a machine’s actual income. For these reasons, it is typical for vending operators to report just a portion of the vending machine income. The rest of the profits will then be tax-free and can go directly into their pockets.

These days, however, vending machines can accept all sorts of online payments that do leave a paper trail. This makes it easy for the HMRC to easily trace instances of tax irregularities. If they find out that you have not been paying correct taxes on your vending machine sales, you would be subject to a penalty.

How to Report Vending Machine Income

The type and amount of taxes that you need to pay for your vending machine business depend on the type of registration you use. If you listed it as a sole trader, you will have to declare the income as part of your personal tax returns. You might also have listed the venture as a limited company, especially if you own more than one automat. In this case, you have to report the collective income as your company’s revenue.

Can You Reduce Taxes on Vending Machine Income?

There is a fixed formula for computing the payable tax based on your vending machine income. You can’t change that formula, but there you can do some things to reduce the amount of your taxable income. The easiest is to write off all business equipment for tax deductions. Your vending machines, which have a significant cost, are a perfectly valid write-off.

Learn the Tax Fundamentals of Vending from

The best way to learn everything you need to know about vending machine taxes is to ask, and is always ready to provide answers. We have been providing top-rated vending solutions in Ireland and Northern Ireland since 1930.

Whatever you want to know about taxes or anything else related to vending, just call us. We will not only answer your question but we can also help you to actually get your new vending business going!

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