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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.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Vermont Enacts Notice & Reporting Requirements and Economic Nexus Legislation

Vermont enacted notice and reporting requirements and economic nexus legislation, effective 07/01/17 or later. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Vermont Click-Through Nexus Law Takes Effect

Vermont’s click-through nexus law takes effect 12/01/15. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

Vermont Enacts Legislation Exempting Cloud Software

Vermont enacted legislation exempting cloud software from sales tax, effective 07/01/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Vermont Discusses Timeline for Implementing Click-Through Nexus

Vermont discussed its timeline for implementing the state’s click-through nexus sales and use tax law. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Vermont Enacts Self-Audit Program for Use Tax

Vermont has initiated a voluntary self-audit program” “Know What You Owe” – intended to aid taxpayers in complying with use tax remittance. From August 1, 2013 to May 1, 2014, business owners can sign up to participate in the program,…

Vermont Moratorium for Tax on Cloud Computing Expires

Vermont has issued a fact sheet discussing cloud computing and advising taxpayers that the legislative moratorium on the Vermont Department of Taxation’s collection of sales tax on prewritten software accessed remotely has not been extended and expires on June 30,…

Vermont Enacts Temporary Exemption of Remotely Accessed Software

Vermont has enacted legislation that temporarily prohibits the Vermont Department of Taxes from assessing sales and use tax on charges for remotely accessed software made after December 31, 2006 and before July 1, 2013. Taxes on such charges shall be…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Vermont Signs Click-Through Nexus, Reporting Requirements Legislation

The Vermont governor signed legislation that includes provisions for click-through nexus and remote seller reporting requirements, effective May 24, 2011.

Vermont Discusses the Sourcing of Wireless Prepaid Calling Services

The Vermont Department of Taxes noted that Vermont sources the sale of wireless prepaid calling sources in accordance with Section 310 of the Streamlined Sales and Use Tax Agreement. Section 314, subsection (C)(3) says that the sourcing for wireless prepaid…

Vermont Announces Amnesty Program Dates

Vermont has approved a six week amnesty program beginning July 20, 2009 and ending August 31, 2009. During this time, certain tax penalties may be waived upon payment of the tax and interest due, without the need for proof of…

Vermont Supreme Court Rules on Movie Snacks

A movie theatre in Vermont has contested an audit assessment that included the classification of the theatre as an “eating and drinking establishment” and assessments on sales of popcorn and nacho chips. The taxpayer argued that popcorn and nacho chips…

Vermont Proposes To Withdraw From SST Agreement & Reduce Tax Rate

Legislation introduced in the Vermont House of Representatives, H.B. 564, on January 8, 2008, proposes to withdraw the state from the Streamlined Sales Tax Agreement, effective January 1, 2009. Vermont became a full member on January 1, 2007. In addition,…

Vermont Taxes Warehouse Racking Systems

In a Formal Ruling by the Vermont Department of Taxes, specially designed warehouse racking systems were found to be subject to Vermont sales and use tax. In this circumstance, a racking system was designed and manufactured by an out-of-state company…