VT Vermont State sales tax rates

STATEWIDE SALES TAX RATE

ECONOMIC SALES THRESHOLD

$100,000

TRANSACTIONS THRESHOLD

200

Do you need to collect sales tax in Vermont?

You’ll need to collect sales tax in Vermont if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.

Do you have physical nexus in Vermont?

Vermont considers a seller to have physical nexus if you have any of the following in the state:

Physical presence, retail store, warehouse, inventory or employees located in Vermont

Do you have economic nexus in Vermont?

Effective July 1, 2018, Vermont considers vendors who make more than $100,000 in sales annually in the state or more than 200 transactions during any preceding twelve-month period in the state to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state. You can read Vermont’s economic nexus guidance for sellers here.

Is what you’re selling even taxable?

Certain services are taxable. Check the Vermont Department of Revenue to see if your service is taxable.

Tangible personal property is generally taxable in Vermont. There are some exemptions such as certain clothing items, medical supplies, prescription drugs and groceries. Check the Vermont Department of Revenue to see if your product is taxable.

Is SaaS taxable in Vermont?

SaaS is non-taxable in Vermont as of July 1, 2015.

Collecting Sales Tax

Vermont is a destination-based sales tax state. Meaning you should be charging everyone in your state the rate where the item is being delivered. Vermont state does have local sales tax, so the total sales tax rate could include a combination of state, county, city, jurisdictions, and district tax rates. The state sales tax rate in Vermont is 6%.

Should you collect sales tax on shipping charges in Vermont?

Delivery charges are considered part of the sale and are therefore taxable if the sale is taxable. If you happen to be selling a non-taxable item, then delivery charges are also not taxable. Vermont is a fairly straightforward state when it comes to shipping taxability.

When are Returns Due?

When you file and pay Vermont sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Vermont?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Vermont, you will be required to file and remit sales tax either monthly, quarterly, or annually.

Vermont sales tax returns are generally always due the 25th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.