There are three components to starting a vending machine business in Virginia: finding a location, buying a machine, and ensuring you have all the proper permits and licenses in place. Let’s break it down:
1. Finding the Perfect Location for Your Business
The first and most critical component of a successful vending machine business is choosing a high-traffic location.
Tips for Securing a Vending Location:
Negotiate a Revenue Share Agreement: Offer the property owner a percentage of your sales to secure prime real estate.
Talk to Owners In Person: When possible, go to the location in person and speak with the person in charge. This will greatly increase the likelihood they agree to your terms.
Find Buildings In Progress: Go to your local city website and find all approved construction projects. Each project should have a representative you can reach out to.
2) Buying the Right Vending Machine
The first step in buying your vending machine is deciding whether you want a refurbished model, or brand new. Check out our detailed breakdown on different types of vending machines here, but generally speaking you want to buy refurbished machines. After you make the decision, to need to decide what type of refurbished machine you wish to purchase.
The most popular type of vending machine is the model that holds 23 unique snack options and and holds 360 total items, but we suggest this only for small to medium sized locations. For high foot traffic locations, you will want to have machines with greater capacity.
3) Securing All Necessary Permits and Licenses:
Sales Tax Permit
In Virginia, vending machine operators are responsible for collecting and remitting sales tax on items sold through their machines. To do this, you’ll need to register for a Sales Tax Permit with the Virginia Department of Taxation.
How to Apply: You can register for a sales tax permit online through the Virginia Department of Taxation website.
Cost: There’s no fee to register, but you must regularly file and pay the sales tax collected from your vending machines.
Health Department Permits (For Food Vending Machines)
If your vending machines sell food or beverages, you’ll need to comply with Virginia Department of Health regulations. This includes obtaining a Food Establishment Permit for each location where your vending machine dispenses perishable or ready-to-eat food. This requirement applies to machines that sell items such as sandwiches, snacks, coffee, or bottled beverages.
How to Apply: Contact your local health department to determine what’s required for your specific vending machine business.
Inspections: In most cases, your vending machines will be subject to periodic health inspections to ensure they meet food safety standards.
Cost: Fees for health permits vary depending on the locality and the type of food products being sold.
