Info Vending Machine Operator Regulatory Requirements

[PepengAgimat]

Vending machine operations in the Philippines are subject to specific Bureau of Internal Revenue (BIR) registration requirements and taxes. Unmanned sales outlets, including automated vending machines (AVMs), are generally treated as branches for tax purposes.

Bureau of Internal Revenue +1

Registration Requirements

• Branch Registration: If the machine is located away from your head office (e.g., in a mall, school, or gas station), it must be registered as a branch with the BIR Revenue District Office (RDO) having jurisdiction over that specific location.
• Registration Fee: Owners must pay an annual registration fee of ₱500 per registered machine.
• Display Requirements: A BIR Certificate of Registration (COR) must be securely attached to the machine and conspicuously displayed to the public.
• Temporary Setups: Machines used for trade exhibits for less than one month do not require branch registration but do need a permit from the local RDO.
  
  
  Bureau of Internal Revenue +3

Business and Sales Taxes

• Value-Added Tax (VAT): Sales from vending machines are generally subject to 12% VAT.
  • If your annual gross sales are ₱3 million or less, you may instead be subject to a 3% percentage tax unless you opt for the 8% income tax rate for small businesses.
• Excise Tax on Sweetened Beverages: If your machines dispense sweetened drinks, they are subject to excise taxes under the TRAIN Law:
  • ₱6.00 per liter: For beverages using purely caloric or non-caloric sweeteners.
  • ₱12.00 per liter: For beverages using high-fructose corn syrup (HFCS).
  • Exempt: Beverages using purely coconut sap sugar or steviol glycosides.
• Local Business Taxes: Local Government Units (LGUs) may impose annual fixed taxes. For example, some cities charge approximately ₱495.00 per year for each machine dispensing soft drinks or other food.
  
  
  Bureau of Internal Revenue +7

Receipt and Invoicing Compliance

• Receipt Requirements: Machines must generate invoices or receipts that include the registered name of the seller, business address, TIN (with branch c0d3), and a Machine Identification Number (MIN).
• Manual Receipts: For some setups, the BIR allows the issuance of official receipts to customers during regular refilling visits if the machine cannot provide them directly.
  
  
  Bureau of Internal Revenue +1

Are you looking for a guide on how to register a new business through the BIR's ORUS portal?
























12 sites

• Tax notes: BIR registration of ATMs, automated vending ...
  Feb 22, 2010 — Tax notes: BIR registration of ATMs, automated vending machines. ... THE Bureau of Internal Revenue (BIR) has stepped up its tax c...
  
  SunStar Publishing Inc.
  
  
  
• Revised Business Tax c0d3 : Fixed Taxes
  Table_title: Fixed Tax Rates on New Business : Amusement Devices Table_content: header: | | | Amount of Tax per Annum | row: | : 1...
  
  City of Mandaluyong
  
  
  
• VAT Ruling on Philippine Vending Corp | PDF - Scribd
  Mar 27, 2021 — VAT Ruling on Philippine Vending Corp. This document is a ruling from the Bureau of Internal Revenue (BIR) regarding Philippine Ve...
  
  
  Scribd
  

Show all