District of Columbia Vending Machine Permits and Licenses

Vending permits and licenses by state · District of Columbia

D.C. folds vending into its Basic Business License system: every business needs a license from the Department of Licensing and Consumer Protection, and food machines use its Food Vending Machine category. Sales tax registration with the Office of Tax and Revenue is free, and one certificate covers all your machines. Grocery food is tax-free in D.C., but food sold from machines is not. Below is each requirement and the law it comes from.

District of Columbia vending requirements at a glance

FreeSales tax certificate of registration

$99Basic business license, 2 years

6%General sales tax, through Sept. 30, 2027

8%Sales tax on soft drinks

Required

Sales tax registration

Free certificate of registration from OTR through Form FR-500. One certificate covers all your machines.

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Recommended

Resale certificate

Request Form OTR-368 on MyTax.DC.gov to buy stock tax-free. It expires after one year.

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Applies

Tax on vending sales

6% on snacks, candy and merchandise, 8% on soft drinks. Vending food does not get the grocery exemption.

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Required

Basic business license

Needed to do business in D.C., from DLCP. $99 for 2 years or $198 for 4 years.

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Depends

Food Vending Machine license

DLCP license category for machines that sell food, with a DC Health inspection report.

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Not required

Trading card license

Pokémon cards need only the sales tax registration and a basic business license.

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Not required

Mystery products

No special license. They are taxable merchandise at 6%, covered by your OTR registration and basic business license.

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Depends

Franchise tax

8.25% of net income with a $250 minimum. Unincorporated businesses owe it once gross receipts top $12,000.

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Last reviewed: October 28, 2026  ·  Sources: D.C. Official Code, D.C. Municipal Regulations (Titles 9 and 25-A), Office of Tax and Revenue, Office of the Chief Financial Officer, Department of Licensing and Consumer Protection, DC Health, federal regulations (full list at the bottom)  ·  General information, not legal advice.

• Requirements and laws
• Do you need a license?
• Sales tax
• Food and drinks
• Cards, mystery and toys
• Federal rules
• Business setup
• FAQ
• Sources

District of Columbia requirements and the laws behind them

Do you need a license to run a vending machine in D.C.?

Yes, a business license. Anyone doing business in the District must hold a Basic Business License (BBL) from the Department of Licensing and Consumer Protection (DLCP) (D.C. Code § 47-2851.02). BBLs come in 11 categories (§ 47-2851.03), and DLCP's license finder puts vending in three:

• Food Vending Machine: under Food Services, for "any dispensing of prepacked food or food products via a vending apparatus." See the food section.
• General Business: for businesses that fit no other category, with General Merchandise Sales as a subcategory (DLCP). Merchandise-only machines most likely belong here, but DLCP names no merchandise vending activity, so confirm with DLCP at (202) 671-4500.
• Mechanical Amusement Machine: under Entertainment Services, where the finder lists claw machines.

What the license costs and what you need first

• Cost: $99 for 2 years or $198 for 4 years. General Business also offers a 6-month license for $49 (§ 47-2851.04; DLCP fees). Revenue of $2,000 a year or less needs no BBL; $2,000 to $10,000 pays no fee if you self-certify.
• Before you apply: register for taxes with the Office of Tax and Revenue (OTR), register your entity, have a Certificate of Occupancy or a Home Occupation Permit, owe the District no more than $1,000 (Clean Hands), and show workers' compensation coverage or an exemption (§ 47-2851.07; BBL FAQs). Apply at BOSS.
• More than one site: the law requires a BBL "for each business location," and DLCP's FAQ agrees. Neither says whether a machine in a host's business is your location, while the food vending application asks for a list of machine locations. Ask DLCP before you place machines at more than one site.

DLCP's Class A to D vending licenses are for street vendors on sidewalks and other public space (D.C. Code § 37-131.01), not machines inside a host business.

Sales tax on vending sales in D.C.

The certificate of registration

No one may make taxable retail sales in D.C. without a certificate of registration from OTR (D.C. Code § 47-2026). OTR's vending rule says machine operators must get one, file returns, and pay tax "on the entire gross receipts from sales made through these machines" (9 DCMR § 437.4).

• Cost: free. The statute says certificates are issued "without charge," and OTR's 2026 return instructions say "There is no charge for registering" (FR-800 instructions).
• Coverage: "One (1) certificate of registration shall be sufficient for all machines operated by a single vendor" (9 DCMR § 437.5). The registration form asks for every location where you will collect tax, so list your machine sites when you apply.
• Where to apply: Form FR-500, the Combined Registration Application, on MyTax.DC.gov. OTR says to register with DLCP if required, complete the FR-500, then go back to DLCP for the business license (OTR).
• Filing: new registrants file quarterly, by the 20th of the month after each quarter, even with no sales.
• Records: keep each machine's location, serial number, stock purchases and monthly receipts (9 DCMR § 437.6). Machines and parts are taxable when you buy them (§ 437.8).

You collect the tax, so buy your inventory tax-free

The sales tax on your vending sales is yours to collect and send to OTR, so do not also pay it on stock you buy to resell. In D.C., OTR issues the resale certificate itself.

• Certificate of Resale, Form OTR-368: request it on MyTax.DC.gov (OTR Exemptions page); there is no blank form to download. Since November 1, 2017, OTR recognizes only certificates on its authorized forms, obtained "through an annual process" (9 DCMR § 414.2).
• One year, your D.C. number: each certificate is valid for one year (§ 414.3) and only if it shows your D.C. registration number (§ 414.4). Send suppliers the new one every year.
• Blanket use: if everything you buy from a supplier is for resale, the supplier may accept a blanket certificate (§ 414.7).
• Multistate forms: because OTR recognizes only its own authorized forms, do not count on a Multistate Tax Commission or Streamlined certificate for D.C. purchases. Use OTR-368.

The certificate covers products you resell, not the machines. If you take stock for your own use or give it away, you owe use tax on it (§ 414.10 and § 414.11; D.C. Code § 47-2202). OTR's return instructions say to report items bought under an OTR-368 and "withdrawn from stock for personal use."

Sales tax rates

The general rate is 6%. An increase to 7% had been set for October 1, 2026 (OTR notice). The Fiscal Year 2027 Budget Support Emergency Act of 2026 (D.C. Act 26-416, effective August 13, 2026) moved it to October 1, 2027, and OTR says the rate "remains 6% through September 30, 2027." Check OTR before you reprice.

No county or city tax is added. Two other rates matter: 8% on soft drinks (§ 47-2002(a)(8)) and 10% on food prepared for immediate consumption (9% under § 47-2002(a)(3) plus 1% under § 47-2002.02).

How vending sales are taxed in D.C.

D.C. leaves most grocery food out of the sales tax, but not food sold from machines. The law lists "sales of food or drink when sold from vending machines" as taxable retail sales (§ 47-2001(n)(1)(A)(ii)), and OTR's return instructions exclude "food or drink sold through vending machines" from the food exemption.

• Snacks, candy, milk and most food: 6%. The vending rule taxes food and drink from machines at 6%, "including the sale of soft drinks, coffee, milk, candy, ice cream, popcorn, and similar items" (9 DCMR § 437.2).
• Soft drinks: 8%, meaning sweetened nonalcoholic drinks other than those with at least 50% milk or 100% juice (§ 47-2001(r-1)). The rule's 6% for soft drinks is older than the 8% rate, so collect 8% and confirm with OTR.
• Hot food and drinks in a cup: these count as food prepared for immediate consumption, 10% in total (§ 47-2001(g-1); FR-800 instructions). The rule lists coffee at 6%, so ask OTR before you run a coffee or hot-food machine.
• Everything else: trading cards, sealed Pokémon product, mystery items, toys and general merchandise are taxable at 6% (9 DCMR § 437.3).
• No vending breaks: we found no bulk-vending or low-price exemption in D.C.'s list of exempt sales (§ 47-2005).
• Cash or card: the vending rule covers "vending machines and other automatic devices" and says nothing about coins, so card-only machines fall under it.
• Pricing: do not advertise that you absorb the tax (9 DCMR § 416). If your prices include tax, ask OTR how to report receipts.

Food and drinks: the Food Vending Machine license

Two agencies are involved. DLCP issues the Food Vending Machine license as part of the BBL system, and DC Health's Division of Food inspects food establishments.

• The DLCP license: covers "any dispensing of prepacked food or food products via a vending apparatus." DLCP asks for a Certificate of Occupancy, a list of the vending machine locations, a description of the foods, tax registration and Clean Hands, and tells applicants to reference their approved DC Health inspection report. $99 for 2 years or $198 for 4 years (DLCP).
• The Food Code: no one may operate a food establishment without a license (25-A DCMR § 4300). The Food Code counts a "vending location" as a food establishment but leaves out "an establishment that offers only prepackaged foods that are not potentially hazardous (time/temperature control for safety) foods," meaning sealed food that does not need to be kept hot or cold (25-A DCMR § 9901).
• Where they differ: DLCP's description reaches all prepacked food; the Food Code leaves out sealed, shelf-stable food. Ask DLCP and DC Health whether a snack-only machine needs the license and an inspection. Sandwiches, milk or anything that must stay cold to stay safe needs both.
• Card readers: the Food Code's vending machine definition includes machines that take a "card," so cashless machines are covered.

D.C. rules for trading cards, mystery products and toys

Pokémon and other trading cards

DLCP's license categories include nothing specific to trading cards. Cards are taxable merchandise at 6%, so you need the OTR registration and a basic business license, most likely General Business. The legal questions are about intellectual property: stock authentic product, and keep Pokémon characters and logos off the machine. Our guide to the legal side of trading card vending machines covers both, and the Pokémon vending machine guide covers the business.

Mystery products and toys

We found no special D.C. license for selling mystery products, such as blind boxes, mystery bags and capsule toys, from a machine. They are taxable merchandise at 6%, like trading cards and toys, so you need the OTR registration and a basic business license, most likely General Business.

Claw and crane machines

DLCP's license finder lists claw machines under the Mechanical Amusement Machine license, in Entertainment Services. It costs $99 for 2 years, and DLCP lists a Certificate of Occupancy, public notice, tax registration and Clean Hands (DLCP).

Federal rules that apply in D.C. and every state

ADA reach ranges

Where vending machines are provided, at least one of each type has to meet the operable parts rules in the 2010 ADA Standards (sections 228.1 and 309). The parts a customer operates, like the screen, card reader and pickup door, have to sit within reach: between 15 and 48 inches above the floor for an unobstructed reach (section 308).

Calorie labeling for food

If you own or operate 20 or more vending machines that sell food, federal rules require calorie information for any item whose Nutrition Facts label the buyer cannot see before buying (21 CFR 101.8). In glass-front machines, packages that show calories on the front in large enough type can meet the rule.

Schools

Machines that sell food to students during the school day may stock only items that meet the USDA's Smart Snacks nutrition standards. The school day runs from midnight until 30 minutes after the official school day ends (7 CFR 210.11).

Setting up the business in D.C.

• Entity: form an LLC by filing a certificate of organization with DLCP's Corporations Division (D.C. Code § 29-802.01). The fee is $99, and every LLC files a biennial report for $300. An LLC formed in another state pays $220 to register in D.C. (DLCP LLC fees).
• Franchise tax: D.C. taxes business income at 8.25%, with a $250 minimum when D.C. gross receipts are $1 million or less and $1,000 above that. Unincorporated businesses owe it only when gross receipts top $12,000 (OTR Business Tax Rates; § 47-1808.03).
• Personal property tax: if you own machines located in D.C. on July 1, file Form FP-31 between July 1 and July 31 each year on MyTax.DC.gov. The tax is $3.40 per $100 of value above $225,000, so small operators often file but owe nothing (§ 47-1522; § 47-1524; OTR).
• Local rules: D.C. is its own local government, so there is no separate city or county license. DLCP's Certificate of Occupancy or Home Occupation Permit requirement covers zoning.

District of Columbia vending permit and license FAQ

Do I need a license to put a vending machine in D.C.?

You need a Basic Business License from DLCP, $99 for 2 years: Food Vending Machine for food, most likely General Business for merchandise. You also need a free OTR certificate of registration, which covers all your machines.

Do I need a food license for a snack vending machine in D.C.?

DLCP's Food Vending Machine license covers any dispensing of prepacked food and asks for a DC Health inspection report, but the Food Code leaves out sites offering only sealed food that needs no temperature control. Ask DLCP and DC Health before you stock sealed snacks. Food that must stay cold needs the license.

How is vending machine food taxed in D.C.?

It is taxable, even though grocery food is not. Snacks, candy and milk from machines are taxed at 6%, soft drinks at 8%, and hot food or drinks dispensed into a cup at 10%. OTR says the 6% general rate stays in place through September 30, 2027.

Do I need a license to sell Pokémon cards from a vending machine in D.C.?

No card-specific license. Cards are taxable merchandise at 6%, so you need the OTR certificate of registration and a basic business license, most likely General Business. Stock authentic product and keep Pokémon characters and logos off the machine itself.

How much does a D.C. sales tax registration cost?

Nothing. OTR issues certificates of registration without charge through Form FR-500 on MyTax.DC.gov. OTR's vending rule says one certificate is sufficient for all the machines a single vendor operates.

Do I pay sales tax on inventory I buy for my vending machines in D.C.?

Not if you give the supplier OTR's Certificate of Resale, Form OTR-368, requested on MyTax.DC.gov. It is valid for one year and must show your D.C. registration number. Stock you use yourself or give away owes use tax, and machines and parts are taxable.

Is the D.C. sales tax going up to 7%?

Not yet. The increase was scheduled for October 1, 2026, but the Fiscal Year 2027 Budget Support Emergency Act of 2026 moved it to October 1, 2027. OTR says the general rate remains 6% through September 30, 2027.

Sources

1. D.C. Code § 47-2001, definitions, § 47-2002, rates and § 47-2002.02
2. D.C. Code § 47-2005, exemptions, § 47-2026, registration and § 47-2202, use tax
3. D.C. Act 26-416, FY 2027 Budget Support Emergency Act, sec. 7002
4. OTR, Sales and Use Tax, Notice of Oct. 1, 2025 Tax Changes and Sales and Use Tax FAQs
5. CFO, September 2026 Revenue Estimates letter (PDF)
6. OTR, 2026 FR-800 M/Q/A booklet (PDF) and New Business Registration
7. OTR, Exemptions (Form OTR-368) and MyTax.DC.gov
8. 9 DCMR § 437, vending machines, § 414, resale, § 415 and § 416
9. D.C. Code § 47-2851.02, .03, .04 and .07, basic business licenses
10. DLCP, Business Licensing Division, license finder, BBL FAQs and fees
11. DLCP, Food Vending Machine, General Business and Mechanical Amusement Machine
12. 25-A DCMR § 9901, Food Code definitions and § 4300, license; DC Health, Division of Food
13. D.C. Code § 37-131.01, street vending
14. D.C. Code § 29-802.01; DLCP, LLC fees
15. OTR, Business Tax Rates and Personal Property Tax; D.C. Code § 47-1808.03, 47-1522 and 47-1524
16. 2010 ADA Standards for Accessible Design and U.S. Access Board guide to operable parts
17. 21 CFR 101.8, calorie labeling of food in vending machines
18. 7 CFR 210.11, competitive food standards (Smart Snacks)