South Dakota v. Wayfair

The recent Supreme Court decision in South Dakota v. Wayfair has made the out-of-state vendor provisions of Act 134 of 2016 effective. Certain out-of-state vendors are now required to register with the State of Vermont and collect and remit sales tax beginning July 1, 2018.

An out-of-state vendor making sales into the State must register and collect sales tax if they made sales of at least $100,000 or 200 individual transactions during any preceding twelve -month period. Please register for a sales tax license or contact tax.business@vermont.gov with questions.

The law defines “vendor” to include : 

A person making sales of tangible personal property from outside this State to a destination within this State and not maintaining a place of business or other physical presence in this State that:

(i) engages in regular, systematic, or seasonal solicitation of sales of tangible personal property in this State:

(I) by the display of advertisements in this State;

(II) by the distribution of catalogues, periodicals, advertising flyers, or other advertising by means of print, radio, or television media; or

(III) by mail, Internet, telephone, computer database, cable, optic, cellular, or other communication systems, for the purpose of effecting sales of tangible personal property; and

(ii) has either made sales from outside this State to destinations within this State of at least $100,000.00, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's liability for tax under this chapter is determined,

A person who has any other contact with this State that would allow this State to require the seller to collect and remit use tax under the provisions of the Constitution and laws of the United States.

32 V.S.A. §9701(9)(F),(G).  See Act 134, Sections 27, 41.

Learn more about sales and use tax, and how to register for a business tax account.


To learn the latest, read Tax Talk, an article by Kaj Samsom, CPA, Vermont Tax Commissioner to find out more about how the 'Supreme Court puts an end to ‘tax-free’ online sales'.