Short answer: is PST charged on food in BC? Mostly no. BC exempts food from PST, and Bulletin PST 206 lists candy, chocolate and snacks such as chips as exempt too. Soda is the exception: it has carried 7% PST since April 1, 2021.
In a vending machine, the rules shift. GST applies to food and drinks sold from a vending machine, even though groceries are usually tax-free. PST (7%) applies to soda, and if a machine sells any soda, to every drink in it, including water and juice. Candy and chips are PST-exempt. The operator who owns the stock is normally the seller who collects and sends in the tax. The one tax question that may touch you as host is whether commission you receive is taxable for your business.
This guide is for owners, managers and bookkeepers at BC businesses and buildings that host, or are about to host, a machine they don't own. It quotes the law and government guidance directly, and links to each.
GST: vending food isn't treated as groceries
Most basic groceries are zero-rated for GST. The Excise Tax Act sets out that zero rate in Schedule VI, Part III, section 1, and then lists exceptions. One of them is paragraph (p): "food or beverages sold through a vending machine".
The CRA's GST/HST Memorandum 4.3, Basic Groceries, says the same thing plainly: "Supplies of food and beverages sold through a vending machine are taxable" (para 134). There's one old exception: if an item is supplied from a vending machine "for a single coin of 25 cents or less, the tax is calculated to be zero" (para 135). Unbottled water dispensed in more than a single serving is also zero-rated.
So a granola bar that's GST-free at the grocery store carries 5% GST in a vending machine.
PST: the soda rule that catches every drink
BC removed soda from its PST exemption for food on April 1, 2021. The Ministry of Finance's Notice 2021-002 spells out what that means for machines:
"You must charge, collect and remit PST on all beverages dispensed by a vending machine or similar equipment, unless the machine does not dispense any soda beverages... even if the beverage is not a soda beverage (e.g. juice, coffee or water)."
The same notice says sellers of "vending machine beverages" must register to collect PST.
In practice:
| What the drink machine sells | PST (7%) | GST (5%) |
|---|---|---|
| Pop plus water, juice and sports drinks | On every drink | On every drink |
| Water, juice and sports drinks only, no soda | Not on those drinks | On every drink |
| Snacks: candy, chocolate, chips, crackers | Exempt (Bulletin PST 206) | Yes (vending exclusion) |
That second row is worth knowing if your site wants a soda-free or "healthy" drink machine: with no soda in it, the PST rule for vending beverages doesn't apply, according to the notice. What counts as a "soda beverage" is defined in section 1 of the Provincial Sales Tax Act, so check a borderline drink against that definition.
Who is "the seller"?
The tax rules are addressed to whoever sells the product. In a full-service placement, the kind VendFynd arranges, the operator buys the machine and the stock, sets the prices, and keeps the sales, so it is the operator that registers and remits. You don't collect tax on someone else's sales. Two sensible checks:
- Ask the operator for its GST and PST registration numbers.
- Make sure the agreement says the operator is responsible for all taxes on the products it sells.
What this means for commission
If an operator offers commission, the tax changes what a percentage is worth. On a drink machine that sells pop, up to 12% of the price the customer pays is tax that goes to Victoria and Ottawa. "10% of gross sales including tax" and "10% of sales after tax" are different amounts. Our commission reality check flags it, and our guide to what's normal for commission in Canada covers the ranges.
Your side: is commission income taxable for you?
This is the one tax question that can land on the host. The Excise Tax Act treats "a supply, by way of lease, licence or similar arrangement, of the use or right to use real property" as a supply of that property (s.136(1)). A host that lets an operator use floor space may be making that kind of supply. At the same time, a business with $30,000 or less in taxable sales over the previous four calendar quarters is a small supplier that generally doesn't have to register for GST (s.148(1)).
We couldn't find CRA guidance on how a sales-based vending commission is treated specifically, so we won't guess. If you're GST-registered and a commission or rent is on the table, ask your accountant before you sign. With VendFynd, most locations receive a commission, set per location and agreed in writing before install, as our host terms say.
Quick answers for common setups
- Office or warehouse, combo machine with pop and chips: GST on everything; PST on every drink; no PST on the snacks. The operator collects both.
- Gym, drink machine with water and electrolyte drinks only: GST on everything; no PST on those drinks as long as there's no soda.
- Strata lobby, smart cooler with soda and sandwiches: GST on the vending sales; PST on every drink; food safety rules may apply to the sandwiches (a separate question from tax).
If you're still comparing offers, the vending agreement checklist includes a line for the operator's PST registration.
About this data
The rules are quoted from the Excise Tax Act as consolidated on laws-lois.justice.gc.ca (current to 2026-09-03), CRA GST/HST Memorandum 4.3, and two BC Ministry of Finance publications: Notice 2021-002 (February 2021) and Bulletin PST 206 (revised October 2026; the October change adds clothing patterns and fabric and does not affect vending items). All were retrieved on 2026-09-26. BC has no stand-alone PST bulletin on vending machines. This is general information, not tax advice. For your own situation, ask the CRA, the BC Ministry of Finance or an accountant.
Sources
- Excise Tax Act, Schedule VI, Part III: https://laws-lois.justice.gc.ca/eng/acts/E-15/page-121.html
- CRA, GST/HST Memorandum 4.3, Basic Groceries: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/4-3/basic-groceries.html
- BC Ministry of Finance, Notice 2021-002: https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/notice-2021-002-sellers-soda-beverages.pdf
- BC Ministry of Finance, Bulletin PST 206: https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-206-grocery-drug-stores.pdf
- Excise Tax Act, s.136(1): https://laws-lois.justice.gc.ca/eng/acts/E-15/page-30.html
- Excise Tax Act, s.148(1): https://laws-lois.justice.gc.ca/eng/acts/E-15/page-34.html
All accessed 2026-09-26.