How frequently does my business need to file sales and use tax returns?
The tax period depends on the amount of sales and use tax liability in the immediately preceding calendar year. So, for example, if in 2014 the sales and use tax liability was $1,000, the business should file monthly. If the business pays $500 or less annual sales and use tax, then the business should file quarterly. Please note: The Department of Taxes will assign your filing frequency upon registration.
What are the due dates for the sales and use tax returns and payments?
The due date depends on the tax period.
- Quarterly filers: 25th day of April, July, October, and January, following the last day of the calendar quarters ending March 31, June 30, September 30, and December 31, respectively
- Monthly filers: 25th day of the month following the month for which tax is due (Exception: 23rd of February)
How does my business file the sales and use tax return and make payments?
Sales and Use Tax returns should be filed and payments should be made electronically using myVTax.
Can I still file the sales and use tax return using a paper form, and make payment with a check?
If you must pay sales and use tax for multiple locations, or if your total sales and use tax remitted for the year will exceed $100,000, the Commissioner of Taxes has mandated that you use myVTax. If you have a single location, and cannot file and pay through myVTax, you may still use the paper forms. File Form SUT-451, Sales and Use Tax Return and instructions.
What is streamlined sales tax?
Vermont, together with a majority of other states, is a member of the streamlined sales tax project. Through the streamlined sales tax agreement, businesses get a uniform definition of taxable items and other benefits to reduce the burden of tax compliance. Learn more about streamlined sales tax.
What forms are required for exempt sales?
Some sales are generally exempt from Vermont Sales and Use Tax, and no special form or reporting is required. However, certain sales transactions are exempt from tax only under specific circumstances. In these cases, an exemption certificate must be provided by the buyer to the seller at the time of sale, and the seller retains the certificate to document why sales tax was not collected from the purchaser for three years. Exemption certificate forms can be downloaded from our website.
If my business makes a purchase over the internet and sales tax was not collected what do I do?
The tax due must be reported on Line 4b of Form SUT-451, Sales and Use Tax Return.
Is sales tax due on delivery and freight charges when I purchase an item and have it delivered?
If the item is taxable, then tax is also due on delivery and freight charges for delivery of the item. Conversely, if the item is tax-exempt, delivery charges are also exempt. When shipping a package containing both taxable and tax-exempt items, tax is due for shipping only the taxable portion of the order. The tax on delivery or freight charges may be applied based on the percentage of either the price or the weight of taxable items in the package.
Is sales tax due based on point of purchase or point of delivery?
A seller must collect sales tax at the time and place of the sale. Sales tax is destination-based, meaning the tax is applied based on the location where the buyer takes possession of the item or where it is delivered.
Are items sold on consignment subject to sales tax?
A retailer who sells items on behalf of another (consignment) must charge tax to the customer on any items subject to Vermont Sales Tax. For example, if a consignment shop sells clothing, then it does not have to charge sales tax as clothing is exempt from sales tax in Vermont. On the other hand, if the consignment shop sells bicycles, then it must charge tax on the sale as bicycles are subject to Vermont Sales Tax.
Are sales of ice subject to sales tax?
Sales of ice are always subject to sales tax. This includes ice purchased pre-packaged and ice purchased to add to beverages to keep them chilled. See Reg. § 1.9741(13) Food and Beverages: " ... Food, food ingredients, and beverages do not include soft drinks, alcoholic beverages or ice which are not exempt from tax under this section. See 32 V.S.A. § 9701(23, (53) (definition of alcoholic beverages and soft drinks). Ice is not exempt under this section because it is not sold for its taste or nutritional value. ..."