Vermont Sales Tax 2023 - 2024

Vermont Sales Tax rate is 6%, and local jurisdictions may add up to 1% in the form of a Local Option Tax. The tax is applied to the retail sale of tangible personal property unless exempt by law. Service-based businesses that provide professional services such as legal advice and architecture may also be subject to the tax if they meet certain criteria.

Those who are required to pay sales tax in Vermont must file returns with the Department of Taxes on a monthly, quarterly, or annual basis. Returns must detail the amount of sales tax collected and the source and destination of each transaction. Filing online is generally recommended, but the Department of Taxes offers paper forms for those who cannot use electronic filing.

Despite the challenges of the pandemic, the economy in Vermont continues to grow, and sales tax revenues are rising ahead of expectations. This is partly due to a surge in e-commerce sales, and federal funds are being poured into the state. The money is helping to support businesses that sell recreational equipment and home improvement products, as well as grocery stores.

How to Register For a Vermont Sales Tax Permit?

Sales tax collection in Vermont begins with registering for a state sales tax permit, which is free. A permit is required for all sales tax collectors in Vermont, including online retailers. It is also illegal to collect sales tax without a permit.

You should register immediately if you’re not registered for a Vermont sales tax permit. You may be required to pay a penalty or interest for late filings. Also, if you’re collecting sales tax in Vermont, you must display your license prominently at your place of business. You can find more information about sales and use tax registration in Vermont here. You’ll need a Federal Employer Identification Number (EIN) to register, which you can get by visiting the IRS website.

Vermont Sales Tax Due Dates

For businesses:

• Monthly filers: The due date for sales tax payment is the 25th day of the following month. For example, sales tax for January 2024 must be paid by February 25.
  • Quarterly filers: The due dates for sales tax returns and payments are:1st Quarter: April 25 (covers Jan – Mar)
  • 2nd Quarter: July 25th (covers Apr-Jun)
  • 3rd Quarter: October 25 (covers Jul – Sep)
  • 4th Quarter: January 25th (covers Oct-Dec)

Important notes:

• The deadline is extended to the next business day if the due date falls on a weekend or holiday.
• You can find more information and resources on the Vermont Department of Taxes website: http://tax.vermont.gov/business/sales-and-use-tax.
• This information is current as of February 1, 2024. It’s always recommended to check the official website for any updates or changes.