Vermont
As an e-commerce seller, you will need to collect sales tax in Vermont if you have:
(1) Sales of at least $100,000 or 200 individual transactions during any preceding 12-month period (economic nexus), or
(2) physical presence in Vermont (physical nexus).
Below, we will highlight some of the basic provisions of Vermont sales tax law.
What is the tax rate range for Vermont?
State: Vermont’s general sales tax rate is 6%.
Local: Vermont localities have the option to impose their own 1% sales tax rate. See Rates and Charts
Do you have physical or economic nexus in Vermont?
Physical nexus. Certain business activities create physical nexus in Vermont. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Vermont. Examples of business activities that can create physical nexus in Vermont include:
- A person maintaining a place of business in the State and making sales, whether at that place of business or elsewhere, to persons within the State of tangible personal property or services, the use of which is taxed
- A person who solicits sales of tangible personal property either by employees, independent contractors, agents, or other representatives
- A person who owns or controls a person engaged in the same manner or similar line of business in this State
Economic nexus. Remote sellers and marketplace facilitators that have sales of at least $100,000 or 200 individual transactions during any preceding 12-month period must collect and remit Vermont sales and use tax on taxable sales.
All sales are included, whether taxable or exempt
Sales you make through a marketplace are also included
Once you pass the threshold, you must register and begin collecting on the first day of the next calendar month, but you have 30-days to conduct the threshold analysis. For example, if you exceeded the threshold at the end of the second quarter of 2023, you must begin collecting by August 1, 2023.
South Dakota v. Wayfair and Marketplace Facilitators
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Digital goods
- Leases and rentals of tangible personal property
- What are examples of sales of nontaxable/exempt items?
- Services, exceptions apply
- Food (except soft drinks)
- Clothing
- Over-the-counter and prescription drugs
- Software as a Service (SaaS)
Sales and Use Tax Exemptions and What is Taxable and Exempt
Are there any sales tax holidays?
Currently, Vermont does not have any sales tax holidays.
Is Vermont a member of the SST (Streamlined Sales Tax)?
Currently, Vermont is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Vermont?
You can register online at:
Streamlined Sales Tax Registration System
Register for a Business Tax Account
Rates
