Kentucky Vending Machine Permits and Licenses
Vending permits and licenses by state · Kentucky
Kentucky has no general state license for vending machines. Most operators need one sales and use tax permit from the Department of Revenue, and it covers all of your machines. Kentucky exempts grocery food from sales tax, but food sold through a vending machine is taxed at the full 6%. A food permit applies only if a machine sells something beyond canned or bottled soft drinks, sealed shelf-stable food, gum, nuts and candy. Below is each requirement and the law it comes from.
Kentucky vending requirements at a glance
Sales tax permit
Sales and use tax permit from the Department of Revenue if you sell anything taxable. One permit covers all your machines.
See details →Resale certificate
Buy inventory tax-free with Kentucky Form 51A105. You collect the tax when it sells.
See details →Tax on vending food
Grocery food is exempt in Kentucky. Food sold through a vending machine is taxed at 6%.
See details →Food permit
Not needed if machines sell only canned or bottled soft drinks, sealed shelf-stable food, gum, nuts or candy.
See details →Trading card license
Pokémon cards need only the sales and use tax permit.
See details →Notice on each machine
Each machine must name the owner or operator, its place of business and its sales tax permit number.
See details →Mystery products
No special license. They are taxable merchandise at 6%, covered by your sales and use tax permit.
See details →Local permits
Many cities and counties require a business license or levy an occupational license tax.
See details →Last reviewed: October 28, 2026 · Sources: Kentucky Revised Statutes, Kentucky Administrative Regulations, Kentucky Department of Revenue, Cabinet for Health and Family Services, Kentucky Secretary of State, Kentucky One Stop Business Portal, 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
Kentucky requirements and the laws behind them
| Requirement | What Kentucky requires | Source |
|---|---|---|
| State vending license | None. Kentucky has no statewide business license, and the state license list has no general vending license. | Kentucky One Stop Business Portal |
| Sales tax permit | From the Department of Revenue. One permit covers all machines of one owner or operator. No fee is listed. | 103 KAR 27:180; KRS 139.240 |
| Notice on each machine | A statement on every machine naming the owner or operator, its place of business and the permit number. | 103 KAR 27:180, Section 4 |
| Buying inventory | Tax-free when you buy it to resell. Give each supplier Form 51A105, Form 51A260 (Streamlined) or the MTC Uniform certificate. | 103 KAR 31:111; KRS 139.270 |
| Sales tax rate | 6% statewide. Kentucky has no local sales tax, so 6% is the rate at every machine. | KRS 139.200; Department of Revenue |
| Food and drinks sold from machines | Taxable at 6%, even though grocery food is exempt. Candy and soft drinks are taxable wherever they are sold. | KRS 139.485 |
| Trading cards, mystery products, toys, merchandise | Taxable at 6%. | KRS 139.200 |
| Food permit | Vending machine company permit from the Cabinet for Health and Family Services, $185 to $375 a year, unless machines sell only exempt items. | KRS 217.809, 217.811; 902 KAR 45:110 |
| Limited liability entity tax | $175 minimum for LLCs and corporations with $3 million or less in gross receipts or profits. | KRS 141.0401; Department of Revenue |
| Forming an LLC | $40 for Articles of Organization (Form KLC). Annual reports cost $15 and are due by June 30. | Kentucky Secretary of State |
Do you need a license to run a vending machine in Kentucky?
Not a vending license. The state's Kentucky One Stop Business Portal says Kentucky does not have a statewide business license that applies to all businesses, though certain types of business need a special license or permit. Its license list mentions vending only for food and beverage vending companies and for cigarette machines. Tobacco is outside this page.
If your machines sell anything taxable, like trading cards, toys, snacks or soda, the one state permit you need is a sales and use tax permit (103 KAR 27:180). Cities and counties can add a business license or an occupational license tax, so check with each one where a machine will sit.
Local coin machine taxes are for amusement machines, not merchandise
Cities may tax coin machines that provide music or amusement, up to $10 per machine, or $20 in cities of the first class (KRS 137.410). The statute leaves out "any bona fide merchandise vending machine in which there are no amusement features," so a snack, drink or trading card machine is outside it. A claw or crane machine may not be. Ask the city clerk before you place one.
Sales tax on vending sales in Kentucky
The sales and use tax permit
Under Department of Revenue rule 103 KAR 27:180, anyone who owns vending machines, or operates them under a lease, applies for a Kentucky retail sales and use tax permit with the Kentucky Tax Registration Application (Form 10A100) and pays tax on the gross receipts from the machines.
- Cost: no fee is listed. The permit statute (KRS 139.240) and the registration application set none, though the Department can require a bond or other security (KRS 139.660).
- Coverage: "One (1) permit shall be sufficient for all machines of one (1) owner or operator." You do not need a permit for each location.
- Where to apply: MyTaxes.ky.gov or the paper Form 10A100 (business registration page). Returns must be filed and paid online (Department notice).
- Notice on each machine: post this statement in a conspicuous place: "This vending machine is owned (operated) by ______ Owner (Operator), ______ Place of Business of Owner (Operator), who holds Permit No. ______, issued pursuant to the Sales and Use Tax Law."
- Commissions and records: you owe tax on total gross receipts even when the location takes a commission. Keep records of each machine's location, serial number, stock and receipts for at least four years (KRS 139.720).
You collect the tax, so buy your inventory tax-free
The sales tax on vending sales is yours to collect and send to the state, so you should not also pay it when you buy the inventory. Kentucky taxes retail sales, meaning sales for any purpose other than resale (KRS 139.010). Your supplier proves a sale was for resale by keeping your certificate on file (KRS 139.270).
- Form 51A105, Resale Certificate: check the blanket or single purchase box, enter your permit account number, describe what you sell, sign it and give it to the supplier. Download Form 51A105 (PDF).
- Blanket certificates: allowed. One covers later purchases from that supplier as long as your business has not changed and you buy the kind of goods you usually resell (103 KAR 31:111).
- Out-of-state suppliers: Kentucky also accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form 51A260) and the Multistate Tax Commission's Uniform Sales and Use Tax Exemption/Resale Certificate (103 KAR 31:111, Section 2).
The certificate covers products you resell, not the machines. If you use tax-free inventory for anything other than holding it for sale, demonstration or display, you owe tax measured by what you paid (KRS 139.290; 139.310). The Department's Retail Packet says to report those purchases on your sales and use tax return. All the forms are on the Department's Sales and Use Tax page and Find a Form page.
Sales tax rates
The state rate is 6% (KRS 139.200), and the Department says "There are no local sales and use taxes in Kentucky." So 6% is the rate at every machine.
What is taxable in a Kentucky vending machine
Kentucky exempts food from sales tax, but not candy, soft drinks or prepared food (KRS 139.485). The same statute taxes food "sold through vending machines or nonmechanical self-service vending systems," so snacks that are tax-free on a grocery shelf are taxed at 6% from a machine.
- Card readers: the statute covers food from a machine "that accepts payment." Nothing in it turns on coins, so expect it to cover cashless machines.
- Tax-included prices: Kentucky normally requires the tax to be shown separately from the price (KRS 139.210). If each machine carries a statement that the price includes sales tax, you figure the tax the same way as retailers who state it separately (103 KAR 27:180, Section 5).
- Bulk vending: sales of 50 cents or less from coin-operated bulk vending machines are exempt if you are primarily engaged in those sales and keep records (KRS 139.470(5)). The law describes a machine that dispenses "upon insertion of a coin," so get a written answer from the Department before you treat cashless bulk sales as exempt.
Everything that is not food is taxable at 6%: trading cards, sealed Pokémon product, mystery items, toys and general merchandise.
Food and drinks: the vending machine company permit
Kentucky permits the vending company, not each machine. Anyone who installs, services or operates machines that dispense food needs a vending machine company permit from the Cabinet for Health and Family Services (KRS 217.808; 217.809). Permits expire every June 30.
Machines that dispense only these items are exempt from the permit and the fee (KRS 217.811(3)):
- Bottled or canned soft drinks.
- Prepackaged food that is not potentially hazardous, meaning sealed, shelf-stable food that needs no temperature control to stay safe.
- Chewing gum, nuts and candy.
Sandwiches, milk or anything that must stay hot or cold for safety puts the machine under the permit. The fee is $125 a year plus a fee based on how many machines you run (902 KAR 45:110). The Food Safety Branch's Vending Machine Company Information Sheet (revised May 2026) lists the totals: $185 for 1 to 25 machines, $215 for 26 to 50, $250 for 51 to 100, $280 for 101 to 150 and $375 for 151 or more. List only the machines that need the permit, by county and address.
The sheet is mailed to the Food Safety Branch in Frankfort, but the regulation makes fees payable to the local health department, so ask before you pay. The Lexington-Fayette County Health Department, for example, lists vending machines among the establishments it permits and inspects.
- Machine rules: machines that sell food needing temperature control must have thermostatic controls, a thermometer and a lockout that stops sales if the temperature fails. Each machine, or a placard at the location, must show the company name, address, phone and permit number (902 KAR 45:100).
- Cashless machines: the permit law covers machines that dispense food "upon insertion of a coin, coins or tokens or by other similar means." It does not mention card readers. If a cashless machine sells food outside the exempt list, plan on the permit and confirm with the Food Safety Branch.
- Micro markets: a separate category. Local health departments permit them as retail food operations (Retail Food Program).
Machines in schools
No Kentucky school may sell competitive foods or drinks from the time the first student arrives until 30 minutes after the last lunch period (KRS 158.854). During the school day, elementary school vending machines may sell only water, 100% fruit juice, low-fat milk and drinks with no more than 10 grams of sugar per serving.
Machines that sell only trading cards, toys or other merchandise do not sell food, so the vending machine company permit does not apply to them.
Kentucky rules for trading cards, mystery products and toys
Pokémon and other trading cards
Kentucky has no special license for selling trading cards. They are taxable merchandise, so the sales and use tax permit covers you. The legal questions with card machines are about intellectual property, not state permits: stock authentic product, and keep Pokémon characters and logos off the machine itself. 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
Blind boxes, mystery bags and capsule toys are merchandise. Kentucky taxes them like cards, toys and other merchandise, at the 6% state rate. Your sales and use tax permit covers them. We found no special license for selling mystery products from a vending machine.
Federal rules that apply in Kentucky and every other 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 Kentucky
- Entity: form an LLC with the Secretary of State. Articles of Organization (Form KLC) cost $40. Kentucky entities file a $15 annual report by June 30 each year, and one that misses the deadline is administratively dissolved. The Department of Revenue tells sole proprietorships and general partnerships to contact the county clerk instead.
- Limited liability entity tax: LLCs, corporations and other limited liability businesses owe it, and sole proprietorships and general partnerships do not. If total gross receipts or total gross profits are $3 million or less, the tax is the $175 minimum (KRS 141.0401; Department of Revenue).
- Local rules: the Department of Revenue says many cities and counties require a local business license, impose an occupational license tax, or both. Check with the city or county where your business is based and each one where you place machines. The Secretary of State posts local occupational license tax forms and ordinances online (KRS 67.766).
Selling vapes or nicotine? Those products have their own Kentucky rules. See our Vape Vending Machines Sales Laws and Regulations in Kentucky.
Kentucky vending permit and license FAQ
Do I need a license to put a vending machine in Kentucky?
Kentucky has no general vending machine license. If you sell taxable items, you need a sales and use tax permit from the Department of Revenue, and one permit covers all of your machines. Add a vending machine company permit from the Cabinet for Health and Family Services only if a machine sells food outside the exempt list.
Do I need a food permit for a snack vending machine in Kentucky?
Not if the machine sells only bottled or canned soft drinks, prepackaged food that is not potentially hazardous, gum, nuts or candy (KRS 217.811). Sandwiches, milk or anything that must stay hot or cold needs a vending machine company permit, which costs $185 a year for 1 to 25 machines.
Is vending machine food taxed in Kentucky?
Yes. Kentucky exempts most grocery food, but food sold through vending machines is taxable at the 6% state rate (KRS 139.485). Candy and soft drinks are taxable wherever they are sold, and Kentucky has no local sales tax.
Do I need a license to sell Pokémon cards from a vending machine in Kentucky?
No special license. Trading cards are taxable merchandise, so the sales and use tax permit covers you. Stock authentic product and keep Pokémon characters and logos off the machine itself.
How much does a Kentucky sales tax permit cost?
Kentucky's permit statute (KRS 139.240) and the Department of Revenue's registration application list no fee, though the Department can require a bond. One permit covers all machines of one owner or operator (103 KAR 27:180), and each machine must display a notice with the permit number.
Do I pay sales tax on inventory I buy for my vending machines in Kentucky?
Not if you buy it to resell. Give your supplier Form 51A105, the Kentucky Resale Certificate, with your permit number, or the Streamlined or MTC Uniform certificate. You collect the tax when the items sell, and inventory you use yourself is subject to the 6% use tax.
Are cashless vending machines treated differently in Kentucky?
Not for the vending food tax, which applies to any machine that accepts payment. Two rules mention coins: the 50 cent bulk vending exemption (KRS 139.470) and the food permit law (KRS 217.808). If a cashless machine depends on either, get a written answer from the agency.
Sources
- KRS 139.200, sales tax imposed (6%) and 139.010, definitions
- KRS 139.240, permit, 139.660, security and 139.720, records
- 103 KAR 27:180, Vending machines
- KRS 139.485, food exemption and vending food
- KRS 139.470(5), bulk vending exemption
- KRS 139.210, separate display of tax
- KRS 139.270, 139.280, resale certificates and 103 KAR 31:111, sales and purchases for resale
- KRS 139.290, property used after giving a certificate and 139.310, use tax
- Kentucky Department of Revenue, Form 51A105, Resale Certificate (PDF) and Form 51A260, Streamlined Sales Tax Certificate of Exemption (PDF)
- Kentucky Department of Revenue, Sales and Use Tax and Find a Form
- Kentucky Department of Revenue, Register a Business and Form 10A100, Kentucky Tax Registration Application (PDF)
- Kentucky Department of Revenue, Retail Packet (PDF) and Online Filing and Payment Mandate
- KRS 217.808, 217.809 and 217.811, vending machine company permits
- 902 KAR 45:100, State Food and Beverage Vending Machine Code and 902 KAR 45:110, permits and fees
- Cabinet for Health and Family Services, Food Safety Branch, Vending Machine Company Information Sheet (PDF, rev. 5/26), Retail Food Program; Lexington-Fayette County Health Department, Food Protection
- KRS 158.854, food and beverages sold in schools
- KRS 137.410, municipal tax on coin machines
- Kentucky One Stop Business Portal, Occupational Licenses/Permits and Start My Business
- Kentucky Secretary of State, Fee Schedule, Form KLC, Articles of Organization (PDF) and Annual Reports
- KRS 141.0401, limited liability entity tax and Department of Revenue, Corporation Income and Limited Liability Entity Tax
- KRS 67.766 and Kentucky Secretary of State, Local Occupational License Tax Forms
- 2010 ADA Standards for Accessible Design and U.S. Access Board guide to operable parts
- 21 CFR 101.8, calorie labeling of food in vending machines
- 7 CFR 210.11, competitive food standards (Smart Snacks)
Disclaimer: Informational only, not legal advice. Statutes, regulations, tax rates and fees change frequently; verify current text at official .gov sources and confirm compliance with qualified counsel for your jurisdiction.
Starting a vending business in Kentucky?
Talk to VTM Vending about machines for trading cards, mystery products and more.