State sales tax rate6%
* While the base rate applies statewide, it’s only a starting point for calculating sales tax in Vermont. For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate.
Vermont sales tax basics
The Vermont (VT) state sales tax rate is currently 6%. Depending on local municipalities, the total tax rate can be as high as 7%.
Other, local-level tax rates in the state of Vermont are quite complex compared against local-level tax rates in other states. Vermont sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels.
Vermont sales tax has numerous local taxing levels that must be monitored and maintained on a regular basis, it is complex and time consuming due to the volume of jurisdictions.
Vermont is listed in Kiplinger’s 2011 10 Tax-Unfriendly States for Retirees. A state sales tax of 9% is imposed on prepared foods, restaurant meals and lodging and 10% on alcoholic beverages served in restaurants. Businesses have a nightmare to maintain and track all the different nuances in the state sales tax code.
The transfer of taxable tangible goods and services is subject to Vermont sales tax. Sales of prewritten computer software have been subject to sales tax in Vermont since July 1, 2014.
As a Streamlined Sales Tax state, Vermont encourages out-of-state sellers without a sales tax obligation to register with the state and collect.
How to register to collect sales tax in Vermont
Businesses should register with the Department of Taxation using a Form S-1, which is downloadable from the department website. Online registration is also available.
Businesses selling into multiple states may register with the Streamlined Sales and Use Tax Project.
How to file sales tax returns in Vermont
Many sales and use tax forms may be downloaded from the Department of Taxation website. The sales and use tax return (Form SU-451) is not available as a downloadable form but may be requested by calling 802.828.2551. Electronic filing is also available through VTBizFile.
Sales tax returns are due either monthly, quarterly, or annually, depending on the amount of tax due. Additional information.
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