Alcoholic beverages are subject to Vermont taxes. Before you begin selling alcoholic beverages, you must have your Vermont business tax account and licensing. Be sure to post your license authorizing you to collect Vermont taxes in a place where customers can see it, such as near a cash register. The Department of Taxes does not issue licenses to sell alcohol. For licensing information, visit the Vermont Department of Liquor Control.
Vermont Sales and Use Tax
Sales of alcoholic beverages by retailers, such as grocery stores or convenience stores, that
- are suitable for human consumption and
- contain one-half of 1% or more of alcohol by volume are subject to the 6% Vermont Sales and Use Tax. See definition at 32 V.S.A. § 9701(23).
Vermont Alcoholic Beverage Tax
Sales of alcoholic beverages that
- are any malt beverages, vinous beverages, or spirituous liquors and
- are served for immediate consumption are subject to the 10% Vermont Alcoholic Beverage Tax. For more information, see 7 V.S.A. Chapters 1 and 9.
Local Option Tax
If you are doing business in or delivering products to a municipality with a 1% local option alcoholic beverages tax or local option sales tax, you must also collect and remit that tax to the Vermont Department of Taxes. Please note: Meals and rooms tax is not subject to use tax.
Other Local Taxes
The City of Burlington, City of Rutland, and City of St. Albans administer and collect their own local meals, entertainment, lodging, or alcoholic beverage taxes. If you have a business in Burlington, Rutland City, or St. Albans City, please contact the appropriate city for information on how to collect and remit the tax.
Contact the City of Burlington:
Contact the City of Rutland:
Contact the City of St. Albans:
How to File
Form MRT-441, Meals and Rooms Tax Return
Filing frequency for a new business is based on how much tax you estimate you will pay when you apply for your Vermont business tax account and licensing. After your first year of tax payments, the Department may adjust your filing frequency.
Forms and Publications
|MRT-441||Instructions||Meals and Rooms Tax Return|
|FS-1114||Brewers, Winemakers, and Distillers: Vermont Taxes and the Manufacture and Sale of Alcoholic Beverages|
|FS-1010||How to Inform Customers When Meals, Rooms, or Alcoholic Beverage Tax Is Included in the Pricing|