Sales Tax Updates in Vermont

Tax Professionals' Resource
February 4, 2013 — 1,530 views  
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The state of Vermont has a general sales tax rate of 6%. This tax is imposed on the gross receipts of the retail sale of tangible personal property, which includes leased and rented properties, public utility services like gas and electric, printing services, amusement charges, bottle deposits, and services pertaining to telecommunications.

Vermont is also unique as they have a meals and rooms tax, in lieu of the general sales tax, in the amount of 9%. This meals and rooms tax is applied to the gross receipts of meals and occupancies.

The state of Vermont shifts sales tax liability from the seller to the purchaser. Like most states, it is illegal for sellers to intentionally or unintentionally promote or market absorbing this sales tax amount from the consumer. It is a state requirement that the sales tax be added to the sales price at the time of purchase. It would also be against the law to either refund or offer to reimburse the sales tax amount.

Tax permits in Vermont can be obtained through the Vermont Commissioner of Taxes where no permit fee is collected. Anyone doing business in the state with a retail location, warehouse, office space, one or more employees, or delivery trucks that are frequently within state lines are considered to have established a physical presence within the state of Vermont. This makes them liable for paying the sales tax.

Vermont, just like many states, has a sales tax exemption for commonly prescribed medicine. The state also has resale exemptions whenever tangible personal properties are purchased to be resold. A resale exemption certificate is required and must include the consumer's name, signature, residential address, their certificate of authority, and an item description and explanation as to why the resale exemption is being requested. This form must also include the specific wording "Vermont Sales Tax Exempt, for Resale" for the exemption to be applied.

As of July 1, 2009, the state of Vermont does not provide sellers with a bracket system for calculating sales tax.

Consumers making out-of-state purchases, unless they are subject to an already paid sales tax, are liable to pay a use tax if they intend to use the purchased property, goods, or services within the state of Vermont. The use tax is only applied whenever tangible personal property or taxable services are bought out-of-state in a state where the purchaser doesn't pay sales tax.

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