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. The Universal Service Charge is imposed on consumers in order to fund improvements to broadband internet service in Vermont and to keep it affordable for state residents. The charge is calculated as 2.4% of the retail charge on all wireless telecommunication sales and is in addition to the state sales tax. The seller may elect not to apply the Universal Service Charge to the transaction if a minimal amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single, non-itemized price. “Minimal amount” is defined here as an amount of service not more than 10 minutes or not more than $5.00. (H. 954 (Act 175))

Posted on October 29, 2020