Sales and Use Tax | Frequently Asked Questions
The tax period depends on the amount of sales and use tax liability in the immediately preceding calendar year. So, for example, if last year the sales and use tax liability was exceeded $500, the business should file monthly. If the business pays $500 or less annual sales and use tax, then the business should file quarterly.
Please note: The Department of Taxes will assign your filing frequency upon registration.
The due date depends on the tax period:
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Quarterly filers: 25th day of April, July, October, and January, following the last day of the calendar quarters ending March 31, June 30, September 30, and December 31, respectively
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Monthly filers: 25th day of the month following the month for which tax is due (Exception: 23rd of February)
Sales and Use Tax returns should be filed and payments made electronically using myVTax.
You must file and pay using myVTax if any of the requirements below applies to your business:
- You file for multiple locations, or
- Your total Sales and Use Tax remitted for the prior calendar year exceeds $100,000, or
- Your business is required to collect one or more local option taxes.
If you are not subject to any of these requirements and cannot file and pay through myVTax, you may still use the paper forms. File form SUT-451, Sales and Use Tax Return. See the instructions.
Vermont, together with a majority of other states, is a member of the streamlined sales tax project. Through the streamlined sales tax agreement, businesses get a uniform definition of taxable items and other benefits to reduce the burden of tax compliance. Learn more about streamlined sales tax.
Some sales are generally exempt from Vermont Sales and Use Tax, and no special form or reporting is required. However, certain sales transactions are exempt from tax only under specific circumstances. In these cases, an exemption certificate must be provided by the buyer to the seller at the time of sale, and the seller retains the certificate to document why sales tax was not collected from the purchaser for three years. Exemption certificate forms can be downloaded from our website.
The tax due must be reported on Line 4b of Form SUT-451, Sales and Use Tax Return.
If the item is taxable, then tax is also due on delivery and freight charges for delivery of the item. Conversely, if the item is tax-exempt, delivery charges are also exempt. When shipping a package containing both taxable and tax-exempt items, tax is due for shipping only the taxable portion of the order. The tax on delivery or freight charges may be applied based on the percentage of either the price or the weight of taxable items in the package.
A seller must collect sales tax at the time and place of the sale. Sales tax is destination-based, meaning the tax is applied based on the location where the buyer takes possession of the item or where it is delivered.
Similarly, if sold or delivered to a municipality with a local option tax on sales, the local option tax is based on where the buyer takes possession.
A retailer who sells items on behalf of another (consignment) must charge tax to the customer on any items subject to Vermont Sales Tax. For example, if a consignment shop sells clothing, then it does not have to charge sales tax because clothing is exempt from sales tax in Vermont. On the other hand, if the consignment shop sells bicycles, then it must charge tax on the sale as bicycles are subject to Vermont Sales Tax.
Sales of ice are always subject to sales tax. This includes ice purchased pre-packaged and ice purchased to add to beverages to keep them chilled. See Reg. § 1.9741(13) Food and Beverages: " ... Food, food ingredients, and beverages do not include soft drinks, alcoholic beverages or ice which are not exempt from tax under this section. See 32 V.S.A. § 9701(23, (53) (definition of alcoholic beverages and soft drinks). Ice is not exempt under this section because it is not sold for its taste or nutritional value. ..."