Understanding Vermont Sales and Use Tax: What You Need to Know

One of the few states in the US that charge a sales tax on both products and services is Vermont. Retail sales of taxable goods and services within the state are subject to a 6% sales and use tax in Vermont. Additionally, the use, storage, and consumption of taxable goods and services within Vermont are subject to the tax. The Vermont Department of Taxes is in charge of collecting the tax, which is used to pay for a number of state initiatives in the areas of public safety, healthcare, and education. What goods are exempt from taxes in Vermont?

Certain goods are free from sales tax in Vermont. These include products bought for resale or to be utilized in the creation of goods or services, as well as the majority of groceries, clothing, and footwear. Additionally, there is no sales tax on things that are bought for usage outside of Vermont.

Online merchants must, in fact, collect sales tax from Vermont residents who make transactions. The reason for this is that Vermont is a signatory to the Streamlined Sales and Use Tax Agreement, which mandates that all signatory states collect sales tax from customers making transactions online. What kind of taxes apply in Vermont? In addition to the sales and use tax, both people and businesses are subject to an income tax in Vermont. Individual state income tax rates range from 3.35% to 8.75%, but companies are subject to a fixed 6% tax. Both real land and personal property are subject to property taxes in Vermont. What is the Burlington, Vermont sales tax?

In conclusion, it is critical for all firms and customers doing business in Vermont to comprehend the state’s sales and use tax. While some items are exempt from sales tax, Vermont residents who shop online must pay the tax. Vermont imposes income and property taxes in addition to the sales tax, which helps pay for a number of state initiatives. Burlington, Vermont charges the same 6% sales tax as the rest of the state.