Frequently Asked Questions

Businesses

I am buying or selling a business. What do I need to know about my tax responsibilities?

If you are buying a business:

  • Before you buy the business; request a letter from the Department of Taxes stating the amount to be held in escrow to cover any outstanding tax liability.
  • Once you own the business; register your business and complete the application to obtain all required tax licenses. Learn How to Register Online for a Vermont Business Tax Account.

If you are selling a business:

  • Pay all taxes due up to the closing date.

If you have additional questions please contact the Business Tax section directly.


What is local option tax?

Municipalities in Vermont may choose to levy a 1% local option tax in addition to state business taxes. Local option tax may be applicable to Vermont sales, meals, rooms, and/or alcoholic beverage tax, depending on the municipality. For additional guidance, review our local option tax page.


How do I request a sales & use tax, meals & rooms, or withholding tax refund?

Use Form REF-620, Application for Refund of Vermont Sales & Use tax, Meals &; Rooms tax, Withholding Tax, and submit to the Department of Taxes at the address specified on the form together with all documentation needed to support the request for a refund.


How do I change the filing frequency for sales and use, meals and rooms, or withholding tax?

Send a letter or an email to the Business Tax section


How do I amend my sales and use, meals and rooms, or withholding returns?

You can amend your return online or by paper form.

Online: Log into myVTax, and click the button for Amending Returns,

Paper form: Submit the amended return with the word Amended marked at the top of the form.


How do I verify a sales and use or meals and rooms license?

Please contact the Business Tax section directly. Please note: We will only verify that a license is valid, and will not disclose any other information.

 

Business Tax Accounts

What businesses need to register for a Vermont business tax account?

A Vermont business tax account is required for most businesses before operating in Vermont. Exempt organizations must also register to receive their exemption from Vermont tax.


How do I set up a Vermont business tax account online?

Review our instructions on how to register online for a Vermont business tax account.


May I set up a Vermont business tax account using a paper form instead of online?

Yes. Complete Form BR-400, Application for Business Tax Account and mail to the tax department.


How do I close my business tax account?

You may close a business tax account online or by using a paper form.

Online: Log into myVTax and click on the link to Cease Account. Each account used by a particular business must be closed individually (for example, you may close a Withholding account if the business no longer has employees, but keep the sales and use account).

Paper form: If you are closing your business or need to cancel a business tax account, you must complete Form B-2, Notice of Change.

 

myVTax

What business tax returns may be filed online through myVTax?

Businesses may file returns and make payments for sales and use, meals and rooms, withholding, and corporate or business income taxes using myVTax.


How do I register my business’s account in myVTax?

Signing up for myVTax is Free! From the myVTax home page, please click on the bar a Not yet signed up for myVTax? Click here to sign up today, and then follow the instructions.

Having trouble creating a myVTax account? You can file and pay your monthly business taxes without creating a login. Simply click on File a Return under the Businesses tab on the myVTax home page.


Can I pay with either ACH credit or ACH debit in myVTax?

Yes, both ACH credit and ACH debit are available payment methods in myVTax.

 

Nonprofits and Exempt Organizations

If my business is a nonprofit organization, does it need to pay Vermont sales and use and other taxes?

Nonprofit organizations that qualify for tax exempt status may be exempt from Vermont sales and use tax. However, in some situations, nonprofits are required to collect and remit sales and use tax and other taxes.


How do I verify a tax exemption certificate?

Please contact the Business Tax section directly. Please note: We will only verify that an exemption certificate is valid, and will not disclose any other information.

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