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.
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