Vermont Sales Tax and Use Tax
What is the Vermont sales tax?
Taxes in Vermont are destination-based, meaning the Vermont sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of Vermont sales tax rates by state, county, city and special district, use our easy Vermont sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Vermont sales tax totals.
What is the Vermont use tax?
The Vermont state use tax rate is the same as the state rate, but there is no use tax collected for county, city or special districts.
If you reside in VT, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Vermont sales tax or use tax?
In general, a business must collect and remit all applicable Vermont sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Vermont says that an out-of-state seller is required to collect tax if they can be defined as a "vendor". Vermont has certain additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Vermont, you can usually get free help by contacting the Vermont Department of Taxation. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Vermont. Click here for listing of recommended resources.
Special rules applying to Vermont sales tax and use taxes
- Shipping is taxable.
- Finance charges are exempt from sales tax, when stated separately.
- Clothing is tax exempt, except for clothing and footwear of certain types.
- Vermont Sales tax holidays have been held in the past, but have not been authorized yet this year.
Since Vermont legislators can vote to change the Vermont sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of VT state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Vermont sales tax jurisdictions.