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Vermont Sales Tax

On this page you will find handy sales and use tax information about Vermont.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Vermont that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000% The state has reduced rates for sales of certain types of items.
Range of Local Rates

0% – 1% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

No
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

12/1/2015
REPORTING REQUIREMENTS

5/24/2011 and 7/1/2017
ECONOMIC NEXUS

7/1/2018 (following Wayfair decision) – see state notice
MARKETPLACE NEXUS

6/1/2019
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

August 1, 2013 - May 1, 2014

Go to Vermont Amnesty Page
AMNESTY INCLUSION PERIODS

Three year lookback period.

TAX TYPES AND CONDITIONS

Use Tax
AMNESTY BENEFITS

Waiver of penalties and 50% of interest due for the period reviewed. Reduced lookback period.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

15 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 25th (23rd of February) of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Vermont Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing, publishing, R&D, agricultural machinery and equipment, forestry and wood products machinery, equipment, and repair parts, manufacturing components & packaging, over-the-counter drugs, food sold by grocery stores for home consumption, clothing, medical equipment and supplies

 

Entity types of exemptions: federal government, State of Vermont, nonprofit organizations qualifying for exempt status under federal law at 26 U.S.C. § 501(c)(3), agricultural organizations qualifying under 26 U.S.C. § 501(c)(5) in some circumstances, volunteer fire departments, ambulance companies, and rescue squads

 

Vermont Exemption Certificate Forms
State Links
State Tax Web Page

Vermont Department of Taxes
Rate Look-Up Page

Vermont Sales Tax Rate Look-Up
Registration Link

Register for Vermont Sales Tax
History & Fun Facts
HISTORY

  • Vermont first imposed its sales and use tax in 1969.
  • Vermont amended its sales and use tax laws in 2003 to conform with the Streamlined Sales and Use Tax Agreement.
FUN FACTS
  • Vermont’s food and beverage sales tax exemption does not extend to soft drinks or sweetened beverages. Soft drinks, however, do not include milk or milk/milk substitute products or beverages that contain greater than 50% vegetable or fruit juice.

Vermont Updates Cheat Sheet for Taxable and Exempt Items

Vermont has updated a set of guidelines detailing which items of tangible personal property are taxable or exempt in under their current laws for quick reference.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

Vermont expands sales and use tax manufacturing exemption to include machinery and equipment in integrated production operation

Machinery used in or consumed as an integral or essential part of an integrated production operation is not subject to sales and use tax in the State of Vermont as of July 2022 following an amendment expanding the Manufacturing Tax Exemption.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Vermont to Require Marketplace Facilitators to Collect Universal Service Charge

Effective July 1, 2021, Vermont will require marketplace facilitators to collect the Universal Service Charge on retail sales of prepaid wireless telecommunications services

Vermont Issues Updated Guidance for Construction Contractors

The Vermont Department of Taxes has provided updated guidance on the application of sales and use tax to contractors.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Vermont Enacts Marketplace Nexus Legislation

Vermont has enacted new requirements for marketplace facilitators, effective June 1, 2019.

Glucose Testing Meters, Test Strips, Lancing Devices and Lancets Exempt in Vermont

A retailer’s sale of glucose test strips, lancing devices, and lancets are exempt from Vermont sales and use tax since they were used in medical diagnosis or treatment.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Vermont Amends Provision for Use Tax Reporting on Individual Income Tax Returns

Modified rule for use tax accruals in Vermont effective 01/01/17.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Vermont Enacts Additional Notice Requirement for Noncollecting Vendors

Effective July 1, 2017, Vermont enacted legislation for an additional notice requirement for non-collecting vendors making sales into Vermont to be filed with the Department of Taxes.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Virginia Enacts Sales Tax Provisions for Accelerated Payments and Dealer Discounts

Virginia governor signed the state’s biennial budget bill containing retail sales and use tax provisions regarding accelerated sales tax payments and dealer discounts.

Airbnb Required to Collect Meals and Rooms Tax in Vermont

Beginning October 1, 2016, Airbnb will collect and remit meals and rooms tax on payments for lodging offered by its hosts located in Vermont. Airbnb hosts are not responsible for any back taxes they have failed to collect.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.