The Universal Service Charge (USC) helps fund improvements to Vermont’s telecommunications services, including broadband Internet service, to keep it affordable for Vermonters. The USC is a 2.4% charge imposed on the retail sales price of all retail telecommunications services provided to customers with a Vermont address. The USC is in addition to the State sales tax.
Beginning on July 1, 2025, the rate of the USC will be $0.72 for each retail access line in service. For prepaid wireless calling cards, the charge will continue to be 2.4% of the retail sales price and will continue to be charged in addition to the State sales tax.
Who Pays the USC
Retailers of prepaid wireless telecommunications services must collect the USC. If a telecommunications provider is also the retail seller, it must collect and remit the USC.
The USC does not apply to wholesale transactions between telecommunications service providers where the service is a part of a service provided to an end user. This exemption includes network access charges and interconnection charges paid to a local exchange carrier.
How to File and Pay
Retailers must file and pay the USC online to the Department of Taxes using myVTax in the same manner and frequency they file and pay the Vermont Sales and Use Tax.
The first time you file and pay the USC using Form SUT-451, Vermont Sales and Use Tax Return, on myVTax you will be asked whether you collect the USC. Check the “YES” box and follow the prompts to pay the amount of USC you’ve collected during the filing period. You will not be asked this question again the next time you file. If you no longer sell calling cards and do not collect the USC, you may change your response to “NO.”
Forms and Publications
| Number | Instructions | Title |
|---|---|---|
| SUT-451 | Instructions | Vermont Department of Taxes Sales and Use Tax Return |
Resources
Highlights of Tax Legislation for 2019
Highlights of Tax Legislation for 2024
Frequently Asked Questions
Who must file?
Any retailer of prepaid wireless telecommunication services, including all retailers of prepaid wireless calling cards, must file and pay the USC.
Are there any exceptions allowed?
If a minimal (below 10 minutes or $5.00) amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single nonitemized price, the USC can be excluded from the transaction.
The USC does not apply to wholesale transactions between telecommunications service providers where the service is a component part of a service provided to an end user.
All exemptions under Vermont law at 32 V.S.A. Chapter 233 “Sales and Use Tax” apply to retail sales of wireless telecommunications services, including prepaid calling cards.
Are there penalties for failure to remit?
Yes, retailers who fail to report or who provide false or inaccurate information may be subject to penalties.
Will my sales data be shared with the public?
Data will only be shared in an aggregated form that does not identify individual filers.