Canada Revenue Agency
www.cra.gc.ca
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Coin-operated machines
Generally, any goods or services you sell through vending machines or coin-operated machines are subject to GST/HST. This includes basic groceries such as milk and fruit, which are usually zero-rated.
As the price of these goods and services includes GST/HST, we consider you to have collected GST/HST when you remove the money from the vending or coin-operated machine.
Example
You collect $100 from your coin-operated machine in Ontario. Multiply that amount by 5/105 to determine the amount of GST collected, or 13/113 to determine the amount of HST.
($100 × 5) ÷ 105 = $500 ÷ 105 = $4.76 GST
GST/HST is equal to zero for revenues from coin-operated machines that are designed to accept only a single coin of 25¢ or less as the total amount payable for the good or service.
For example, if you sell a lollipop in a vending machine for 25¢, and the vending machine only accepts one 25¢ coin, the GST/HST is equal to zero.
This rule does not apply to machines that accept:
- $1 or $2 coins; and
- more than one coin for the amount payable for the good or service.
Note
Coin-operated washers and dryers in common areas of residential buildings are exempt from GST/HST.
