The population of the New England state of Vermont is about 600,000. Most products and services sold in the state are subject to a 6% sales tax. But not all products and services must charge a sales tax. We’ll look more closely at whether a resale certificate is necessary and what items are subject to the Vermont sales tax in this post.
The majority of tangible personal goods and some services are subject to the Vermont sales tax. This includes things like furniture, clothing, gadgets, and automobiles. Some purchases are, nevertheless, excluded from paying sales tax. For instance, the sales tax is not applied to items such as food for home consumption, prescription medications, and medical supplies.
There are also some services that are not subject to sales tax. For instance, most healthcare, educational, and legal services are excluded from the sales tax. It’s significant to remember that a service’s taxability may vary depending on how it is delivered. For instance, the supplier may need to distribute the costs appropriately if a service has both taxable and non-taxable components.
You might be wondering if you need a resale certificate if you own a business in Vermont and want to buy products tax-free for resale. Businesses can provide their suppliers a resale certificate, which attests that they don’t need to pay sales tax since they intend to resell the products they’re buying.
To make tax-free purchases for resale in Vermont, businesses do require a resale certificate. The certificate must be shown to the supplier at the time of purchase and can be obtained from the Vermont Department of Taxes. After three years, the certificate expires and needs to be renewed.
In conclusion, the majority of tangible personal goods and some services are subject to the Vermont sales tax, but there are several exceptions. A resale certificate from the Vermont Department of Taxes must be obtained by business owners who wish to make tax-free purchases for resale and shown to suppliers at the time of purchase. Businesses can reduce excessive tax costs and guarantee compliance with Vermont sales tax rules by knowing what products are subject to the sales tax and when a resale certificate is necessary.