The Vermont (VT) state sales tax rate is currently 6.0%. Depending on local municipalities, the total tax rate can be as high as 7%.

Other, local-level tax rates in the state of Vermont are quite complex compared against local-level tax rates in other states. Vermont sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels.

Vermont sales tax has numerous local taxing levels that must be monitored and maintained on a regular basis, it is complex and time consuming due to the volume of jurisdictions.

Vermont is listed in Kiplinger’s 2011 10 Tax-Unfriendly States for Retirees. A state sales tax of 9% is imposed on prepared foods, restaurant meals and lodging and 10% on alcoholic beverages served in restaurants. Businesses have a nightmare to maintain and track all the different nuances in the state sales tax code.

The transfer of taxable tangible goods and services is subject to Vermont sales tax. Sales of prewritten computer software have been subject to sales tax in Vermont since July 1, 2014.

As a Streamlined Sales Tax state, Vermont encourages out-of-state sellers without a sales tax obligation to register with the state and collect.

How to Register

Businesses should register with the Department of Taxation using a Form S-1, which is downloadable from the department website. Online registration is also available.

Businesses selling into multiple states may register with the Streamlined Sales and Use Tax Project.

How to File and Pay

Many sales and use tax forms may be downloaded from the Department of Taxation website. The sales and use tax return (Form SU-451) is not available as a downloadable form but may be requested by calling 802.828.2551. Electronic filing is also available through VTBizFile.

Sales tax returns are due either monthly, quarterly, or annually, depending on the amount of tax due. Additional information.

Deadlines

Due dates vary each month. Please see the Department of Taxation calendar of 2014 due dates.

Avalara Sales and Use Tax Products for Vermont

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Vermont Department of Taxes