Vermont law places three notice and reporting requirements on vendors that lack sales tax nexus and do not collect Vermont sales tax when making sales into Vermont. A noncollecting vendor must follow the instructions below to ensure compliance with the law and to avoid penalties. The Vermont Department of Taxes is authorized to adopt rules and procedures and create forms necessary to implement the notice requirements explained in this guidance. 32 V.S.A. § 9712.
What is a “Noncollecting Vendor?”
A “noncollecting vendor” is a vendor that
- makes sales into Vermont that are subject to sales tax but
- does not collect sales tax and
- lacks sales tax nexus with Vermont.
A vendor that has sales tax nexus through a presence and business activity is not a “noncollecting vendor” and is instead legally liable for any tax due but not collected. A vendor with sales tax nexus does not have the option to follow these notice requirements in lieu of collecting and remitting sales and use tax.
A vendor that collects and remits sales and use tax is not “noncollecting” and therefore is not required to follow the reporting requirements.
If you are a noncollecting vendor, please see the chart below to determine what requirements apply to your business.
|Type and Size of Vendor||Summary of Requirements|
|All noncollecting vendors||
Provide a transactional notice with every Vermont reportable purchase not exempt from sales and use tax.
|Every noncollecting vendor for every Vermont purchaser who made $500.00 or more in total purchases in the previous calendar year||
Send notification to all Vermont purchasers with $500.00 or more total, showing the total amount paid by the purchaser for Vermont purchases made in the previous calendar year.
|Noncollecting vendors who made $100,000.00 or more in sales into Vermont in the previous year||
Transmit an annual customer information report to the Department of Taxes on or before January 31 of each year for every purchaser required to receive an annual purchase summary.
Penalties for Failure to Follow Noncollecting Vendor Reporting Requirements
- The penalty for a failure to provide a transactional notice for a Vermont purchase is $5.00 for each such failure, unless the noncollecting vendor shows reasonable cause for the failure.
- The penalty for a failure to send the annual purchase summary is $10.00 for each such failure, unless the noncollecting vendor shows reasonable cause for the failure.
- The penalty for a failure to transmit an annual customer information report to the Vermont Department of Taxes is $10.00 for each failure, unless the noncollecting vendor shows reasonable cause for the failure.
How to File an Annual Purchase Summary Report
You may click the link “File an Annual Purchase Summary Report” below to get to the report page. Before you upload your Annual Purchase Summary Report for the first time, you must download the "Annual Purchase Summary Report Example File" shown below and save the file in a Text (Tab delimited) (*.txt) format. Please see guides and the example file below for more information about how to submit the annual report and upload it at myVTax.
- How to File an Annual Purchase Summary Report
- How to Save an Excel File as Tab Delimited File
- Annual Purchase Summary Report: File Upload Layout
- Annual Purchase Summary Report Example File