Important Sales Tax Information Regarding Energy Drinks

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.

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