Retail Tax Obligations from Day One

Every product sold through your vending or micro market machine is considered a taxable retail sale. States treat vending operators no differently than storefront retailers. To stay compliant, you must enable the tax collection toggle in your machine’s menu from the start. Pull tax totals from your monthly sales reports and remit based on your state’s schedule—monthly in Illinois, quarterly in others. Treat collected sales tax as trust funds, not income. Park the tax portion in a separate ledger or savings account so filing never causes a financial hit.

Avoiding Double Taxation

A common rookie error is buying inventory before obtaining a resale certificate. If you do, you’ll pay sales tax at purchase and again when selling—double-taxing yourself unnecessarily. Think of sales tax as a relay race:

• The machine rings up the sale

• You collect and bank the tax portion

• You remit it to the Department of Revenue on schedule

Never spend collected tax. Tight recordkeeping keeps you compliant and avoids triggering state audits.

Applying for a Resale Certificate

A resale certificate lets you purchase wholesale goods tax-free. Search your state’s “sales tax resale certificate” and apply online using the provided form. Once issued, hand the certificate to Costco, Sam’s Club, Amazon Business, and any local distributors. You’ll immediately stop paying sales tax on resellable inventory. This boosts your profit margins by 4–10%. Keep the certificate on file, respond to any renewal notices, and secure this cost-saving advantage before your first bulk purchase.