(a) A permitted vending device operator (PVDO) that does not manufacture vending device goods may choose to pay the five and five-tenths percent (5.5%) vending goods wholesale tax ("the tax") on the purchase price of vending device goods by either the method in subdivision (a)(1) of this section or the method in subdivision (a)(2) of this section described below:

1. (1)

   1. (A) The tax shall be reported for the month in which the purchases are made.
   2. (B)

(i) If the PVDO receives a manufacturer's rebate after the sale of goods as a cash payment, the PVDO may deduct the rebate amount from the total amount of goods subject to the tax in the month in which the rebate is received.

1. (ii) The PVDO must maintain copies of the rebate checks.

   1. (C) A PVDO that chooses this method for calculating tax must use this method on all purchases of vending device goods; or

2. (2)

   1. (A) The tax shall be reported for the month in which goods are withdrawn from inventory for placement in a vending device.
   2. (B) The tax shall be based upon the actual purchase price of the withdrawn goods.

   3. (C)

      1. (i) If the PVDO receives a manufacturer's rebate after the sale of goods as a cash payment, the PVDO may deduct the rebate amount from the total purchase price of goods subject to the tax in the month in which the rebate is received.
      2. (ii) The PVDO must maintain copies of rebate checks.
   4. (D) A PVDO that chooses this method for calculating tax must use this method on all purchases of vending device goods.

(b)

1. (1) If due to the nature of a PVDO's main business operations, calculating the purchase price of a particular item sold through a vending device is impossible or overly burdensome, the PVDO may base the tax on the average purchase price of that item during the reporting month.

2. (2)

   1. (A) If during the reporting month the PVDO withdraws a particular item and identical items were not purchased during the reporting month, then the tax on the withdrawn items will be based on the average purchase price of identical items purchased during the closest previous month to the reporting month.
   2. (B) The PVDO may only average purchase prices of identical goods.

   3. (C) Goods are identical if they have the same characteristics, such as:

      1. (i) Brand;
      2. (ii) Manufacturer;
      3. (iii) Flavor;
      4. (iv) Ingredients;
      5. (v) Weight;
      6. (vi) Volume; or
      7. (vii) Size. Example: A PVDO operates a grocery store as well as vending devices. In July, the PVDO removes from inventory Diet Coke and Snickers candy bars for sale through the vending devices. The PVDO elects to pay the tax on the withdrawal of inventory. The PVDO purchases Diet Cokes during the months of June and July at varying unit prices. The PVDO purchased Snickers bars in June but not July. The PVDO may calculate the tax for July on withdrawn Diet Coke using the average purchase price for such goods during July. The PVDO may calculate the tax for July on withdrawn Snickers bars using the average purchase price for such goods during June.
      8. (c)
3. (1) A PVDO may deduct the purchase price of stale goods from taxable purchases or withdrawals for the month in which the goods were discarded or returned to the vendor.

4. (2) Adequate records must be maintained to establish this deduction.

   1. (d) A PVDO may not calculate the tax based on the gross receipts or proceeds derived from the sale of goods through a vending device.