A Short and Sweet Recap of Vermont Sales and Use Tax
- Apr 17, 2014 | Gail Cole
The Vermont Department of Taxes has released a video on the application of sales and use tax to installed items. Before diving into that complicated topic, it provides a tidy explanation of Vermont sales tax, use tax, and sales and use tax exemptions. While the video lacks flair, it is informative.
Vermont sales tax
Tax applies to the retail sale of:
- Tangible personal property (generally anything you can feel, touch or see);
- Public utility services, including gas and electricity;
- The production, fabrication, printing or imprinting of tangible personal property for a consideration;
- Admissions to places of amusement;
- Telecommunications services;
- Directory assistance (does it still exist?);
- Tangible personal property to an advertising agency for its use in providing advertising services; and
- Specified digital products (purchased via a download).
Vermont use tax
Use tax follows the same rates, rules and exemptions as sales tax, and was created to "level the playing field." It applies when:
- You make a purchase from a vendor not registered with the state to collect sales tax (typically out-of-state vendors delivering into the state by common carrier);
- You use property that you normally manufacture for sale;
- You use property (for personal or business purposes) that you originally purchased for resale (with an exemption certificate).
Use tax must be remitted by the buyer.
Vermont sales and use tax exemptions, in a nutshell
The narrator explains that there are 49 specific exemptions in the Vermont tax statute. Alas, they are not listed in the video, but the curious are invited to read through them on the Department of Taxes website. Various incomplete lists of exemptions on the website encourage the curious to contact the department for additional information.
Like videos? This one can be found on the Vermont Department of Taxes website. Go to Publications, then Fact Sheets, the Contractors and Use Tax: Video.
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