The sale of goods and services from vending machines is subject to 5% GST and 9.975% QST. This includes products such as milk and fruits that are usually zero-rated.
The price of goods and services sold in vending machines generally includes GST and QST, which are considered to have been paid at the time of sale and collected on the day the money is removed from the machine. However, you must take into account the taxes for the reporting period that includes the day the money is removed from the machine.
You must calculate the taxes on the money collected from the vending machine. The QST is calculated by multiplying the amount collected by 9.975/114.975. GST is calculated by multiplying the amount collected by 5/114.975.
You remove $100 (GST and QST included) from your vending machine. To determine the QST collected, do the following calculation: $100 × 9.975/114.975 = $8.68.
To determine the GST collected, do the following calculation: $100 × 5/114.975 = $4.35.
Vending-machine operators do not have to calculate GST and QST on sales made through mechanical coin-operated devices that accept only a single coin of $0.25 or less for each transaction.
The right to use a washing machine or clothes dryer located in a common area of a residential complex is exempt from GST and QST.