Vermont is a destination-based state (sales are taxed where the buyer is located).
Businesses may file in the following ways:
The Vermont sales and use tax is 6%.
Some localities charge a 1% local option tax.
Food, food products and beverages are exempt from Vermont sales tax with the exception of soft drinks and food and beverages sold in vending machines.
Prepared and restaurant meals are taxed at a rate of 9% (meals and rooms tax).
A business is considered to have established a tax presence in the state if it:
Online activities that establish nexus in Vermont include:
The Department of Taxes will determine whether you file monthly, quarterly, or annually.
Returns are due on the 25th of the month after the filing period ends.
You must register for your business tax account and license prior to collecting sales tax. Registration is free. Your Vermont Sales and Use Tax license must be displayed so that it’s visible to customers.
Taxes paid after the due date of the return accrue interest and late payment penalties.
The penalty is 5% per month with a maximum penalty of 25% of taxes due.
Interest is charged based on a rate set annually by the Department.