701—20.6 (422,423) Vending machines. Before July 1, 1985, any food item which is sold through a vending machine shall not be exempt from sales tax. On or after July 1, 1985, prepared food and drinks sold through vending machines will be taxable either if sold for consumption on the premises of the retailer under 20.5(2)“a” or if prepared by the retailer for immediate consumption off of the premises of the retailer under 20.5(2)“c.” Candy, candy-coated items, candy products, and beverages described in subrule 20.1(3) are taxable when sold through vending machines.
This rule is intended to implement Iowa Code section 422.45.