Important Sales Tax Information Regarding Energy Drinks
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.
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This information is provided by the Nebraska Department of Revenue to assist grocery and other retailers with questions relating to the sale of energy drinks.
To determine whether drink products are subject to tax, you must review the label on the products. If the drink is labeled with the “Supplement Facts” box, the product is subject to tax as a dietary supplement. Drinks labeled with the “Nutrition Facts” box are exempt as a food product.
All drinks sold through a vending machine are subject to tax, regardless of the label on the product.
Nebraska Sales and Use Tax Regulation 1-087, Food for Human Consumption, and the Department’s Information Guide on Food, Food Ingredients, and Dietary Supplements provide additional information on this topic.
You may also contact the Department of Revenue at 800-742-7474 (NE and IA) or 402-471-5729.