Vermont: Sales Tax Handbook
How to file your sales taxes in Vermont
Once your business has a Vermont sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Vermont government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Vermont
If the seller has an in state location in the state of Vermont, they are legally required to collect sales tax at the rate of the buyer's location, where the sale was made, as Vermont is a destination based sales tax state.
If the seller's location is out of state, and the seller has tax nexus, then the state of Vermont still requires you to charge sales tax at the destination based rate.
Sales Tax Collection Discounts In Vermont
Vermont allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Vermont sales tax regulations
It must be noted that while there is no vendor discount percentage, all sellers who collect tax can certainly keep any sales tax that was lawfully collected, and in excess of the total tax due under the sales tax bracketing system
Your Vermont Sales Tax Filing Requirements
To file sales tax in Vermont, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of Vermont provides taxpayers with several options for filing taxes. One option is the online service AutoFile. It is also possible for sales tax payment to be remitted through this online system.
It must be noted that businesses which pay five hundred dollars or less must pay anally, with the due date being January 25th. Taxpayers submitting between five hundred and two thousand five hundred dollars file quarterly, with the due date being the 25th of the month directly after the end of the quarter. Taxpayers who submit greater than two thousand five hundred dollars are required to file monthly, with the due date set as the 25th of the next month.
The state of Vermont requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your Vermont Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 25th (23rd of February) of the month following reporting period. For a list of this year's actual due dates, see our calendar of Vermont sales tax filing due dates.
Where To File Your Vermont Sales Tax Return:
Filing Your Vermont Sales Tax Returns Online
Vermont supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Vermont allows businesses to make sales tax payments electronically via the internet.Electronic payments can be required for any taxpayer who must pay a federal tax by EFT, or for any taxpayer who has sent at least two noncollectable checks the Tax Department with regard to any state tax payment in the last two years.
You can process your required sales tax filings and payments online using the official VTBizFile website, which can be found here . You should have received credentials to access your VTBizFile account when you applied for your Vermont sales tax license.
Simplify Vermont sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
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