Use Tax for Individuals

Button: Ind Use Tax

Please note: Act 73 of 2017 requires vendors to report to the Department of Taxes certain transactions on which no sales tax was paid.

What Is Use Tax?

When a seller does not charge the buyer Vermont Sales Tax on an item taxable in Vermont, the buyer must pay Vermont Use Tax. Taxable items sold over the internet, by mail-order, by phone, or bought out-of-state and used in Vermont generally qualify. 

Vermont Sales Tax and Vermont Use Tax work together to ensure Vermont taxpayers pay the right amount of tax to help support the services the state provides to Vermonters. Sales and use tax applies to individuals (residents and nonresidents) and businesses. Use tax has the same rate of 6%, rules, and exemptions as sales tax.

Vermont Sales and Use Tax is “destination-based.” One of the following must happen for the purchased item to be subject to sales and use tax:

  • The buyer takes possession of the item in Vermont.
  • The buyer has the item delivered or shipped to Vermont.
  • The buyer purchases the item outside of Vermont and then brings it into Vermont to use. 

Frequently Asked Questions

Find answers and general information about Vermont Use Tax. If in doubt about an item you’ve purchased, contact the Vermont Department of Taxes at 802-828-2551. For more information, please review our press release and the FAQs below.

Q: Why does Vermont have a use tax?

Q: I received a letter from the Department about use tax. What do I do next?

Q: Do I have to pay use tax?

Q: How do I know when to pay use tax?

Q: What is exempt from use tax?

Q: How do I pay use tax?

Q: How do I figure out how much I owe?

Q: My town has a local option tax. Do I have to add local option tax when I pay use tax?

Q: I made a purchase in another state, such as New Hampshire, and was not charged any sales tax. Do I owe Vermont Use Tax?

Q: I made a purchase in another state and was charged sales tax at a lower rate than Vermont’s rate. Do I still owe Vermont Sales Tax?

Q: How do I know if something I buy is subject to Vermont Use Tax?

Q: Are alcoholic beverages subject to Vermont Sales and Use Tax?

Q: I made a purchase in another state and was charged sales tax at a higher rate than Vermont’s rate. Does Vermont pay me the difference between the two rates?

 

Helpful information
General Guidelines on Sales Tax: What Is Taxable and Exempt?
Vermont Use Tax for Individual Taxpayers
Vermont Statute 32 V.S.A Chapter 233
32 V.S.A. Chapter 225 Vermont Sales and Use Tax Regulation § 1.9701

Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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