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Meals and Rooms Tax Exemptions

Beginning July 1, 2019, an exemption under Act 51 applies to purchases of meals for the purpose of resale.  A buyer intending to resell meals may purchase meals without paying meals tax to the seller.

Once the buyer resells the meals, it must collect and remit meals tax to the Department of Taxes.

The buyer must present to the seller an accurate and properly executed exemption certificate, Form M-3, Vermont Meals Tax Exemption Certificate for Purchases of Meals For Resale for the exempted sale. The responsibility is on the seller to verify that the buyer will resell the meals.  If the seller accepts an exemption certificate with no reasonable expectation that the meals will be resold, the seller will be responsible for the meals tax not collected from the buyer. 

The exemption certificate must be received at the time of sale and must be signed, dated, and complete.

Sellers must retain exemption certificates for at least three years from the date of the last sale covered by the certificate to document why tax was not collected from the buyer.

View a list of available sales and use tax exemptions and exemption certificates.