Classification of Coffee Machines as Vending Machines or Beverage Preparation Equipment: The Supreme Court's Position

The classification of goods according to the UKT ZED is carried out based on their actual characteristics, configuration, and main function in the condition in which the goods are presented for customs clearance, and not on the potential possibilities of further modification. A coffee machine that is not equipped with payment acceptance devices (coin acceptors, banknote acceptors, terminals for cashless payments, etc.) and dispenses a drink after a simple user selection and button press is subject to classification under commodity code 8419 of the UKT ZED as equipment for preparing hot beverages. The technical possibility of connecting payment modules, connectors, or adapters is not sufficient grounds for classifying it as a vending machine (commodity code 8476 of the UKT ZED). This conclusion was made by the Supreme Court in the composition of the panel of judges of the Cassation Administrative Court.

On May 21, 2026, the CAS SC reviewed the cassation appeal of the Kyiv Customs against the decision of the Dnipropetrovsk District Administrative Court dated June 4, 2025, and the ruling of the Third Administrative Court of Appeal dated October 23, 2025, in case No. 160/10913/25 filed by a Limited Liability Company against Kyiv Customs regarding the recognition of the decision as unlawful and its cancellation.

CASE CIRCUMSTANCES

The taxpayer imported professional coffee machines of the Jura brand (models X4, X10, W8, Giga W10) into the customs territory of Ukraine, declaring the goods as coffee preparation equipment not for household use, which does not have a payment collection device, under the UKT ZED code 8419 81 20 90.

Kyiv Customs, after sampling and examining the samples, decided to change the goods code to 8476 21 00 00 (vending machines), justifying this by the presence of connectors and the technical possibility of connecting payment modules, adapters (Jura Payment Connect, Wi-Fi Connect, etc.) and software for cashless payments in the coffee machines. The customs authority emphasized that the possibility of connecting payment modules and the presence of corresponding technical interfaces are sufficient grounds for classifying the goods as vending machines.

The Dnipropetrovsk District Administrative Court, by a decision upheld by the ruling of the Third Administrative Court of Appeal, satisfied the claim because the imported coffee machines were not equipped with payment acceptance devices in their imported state, and their main function is beverage preparation, not automatic sale of goods after payment.

The Supreme Court dismissed the cassation appeal and left the contested court decisions unchanged.

COURT ASSESSMENT

Goods must be classified according to the UKT ZED solely based on the objective characteristics of the goods in the form in which they are presented for customs clearance.

For classifying goods under commodity code 8476 UKT ZED (vending machines), the decisive factor is the presence of the main function of automatic sale of the product after payment (monetary or cashless exchange between the buyer and the machine). The absence of payment collection devices (coin acceptors, banknote acceptors, payment terminals, etc.) excludes the goods from this category and is grounds for classification under commodity code 8419 UKT ZED as equipment for preparing hot beverages.

The mere technical possibility of subsequently connecting payment modules, the presence of corresponding connectors, or software compatibility with payment systems does not change the classification code of the goods. The hypothetical possibility of further modification or change of functionality cannot be grounds for assigning the goods to a particular commodity code. Such an approach would contradict the Basic Rules of Interpretation of the UKT ZED, in particular Rules 1 and 2(a).

Rule 2(a) of the Basic Rules of Interpretation of the UKT ZED does not apply in this case because the disputed coffee machines are complete products in the condition presented for customs clearance and perform their main function (coffee preparation) without additional completion.

More details and the text of the Supreme Court ruling dated May 21, 2026, in case No. 160/10913/25 can be found at this link. https://reyestr.court.gov.ua/Review/136760602

Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp pages on Facebook and Instagram to stay informed about the most important events.