Vermont Sales Tax

Vermont is an origin-based sales tax state with a 6% sales tax rate . If you are a small business that sells tangible personal property or services to customers in the state, you need to register for Vermont Sales Tax. You can do this online through myVTax or by downloading and mailing in a registration form. You’ll need a Federal Tax ID Number, also known as an EIN, to register. After you’ve registered, you can file your returns through the myVTax portal. You can pay your estimated sales tax due via ACH debit or complete a voucher and mail it with your return.

Be sure to keep detailed records of all your taxable sales and exempt sales. Then, use a sales tax calculator to determine the correct amount to charge your customers. You can also use a sales tax lookup tool to find the right combined state, county, city, and special district rates for each address you’re invoicing.

How to File Vermont Sales Tax?

If you are a Vermont sales tax filer, you can find a wealth of resources on the Department of Taxes’ website. These include a free economic nexus calculator and forms for filing, collecting, and remitting sales tax. It is also important to keep detailed records of both taxable and tax-exempt sales. The more information you have, the less likely it is that you will make an error in your filings.

Sales taxes are a complex issue, but the basics are fairly straightforward. The state of Vermont collects sales tax on tangible personal property and some services. It is a destination-based state, which means that you must charge sales tax on taxable items based on the buyer’s location. Digital products, such as media streaming services and eBooks, are also taxable in Vermont. If you exceed $100,000 in gross revenue or 200 transactions, you must register for Vermont sales tax.

Vermont Sales Tax Exemptions

There are a number of sales tax exemptions in Vermont, including resale certificates and certain nonprofit organizations. The state’s Department of Taxes manages these rules, which can be found on its website. Generally, the department requires that buyers provide a resale or exemption certificate with each purchase.

Vermont Sales Tax Due Dates

As of November 15 of 2023, Vermont taxpayers who were directly impacted by severe flooding have an extended deadline to file and pay their sales and use tax. This extension applies to quarterly etimated tax payments that were originally due on September 15. If you need more time to file, you can request an extension using Form IN-151 – Application for Extension of Time to File.