One of the US states that levies a sales tax on the acquisition of tangible personal property and certain services is Vermont. This implies that you might be required to collect and submit sales tax if you are selling products or services in Vermont. But the issue of whether Vermont needs a resale certificate still exists. The answer is indeed. A resale certificate must be obtained from the Vermont Department of Taxes if you are a retailer, wholesaler, or reseller in Vermont. Using this certificate, you are able to purchase goods or services that you intend to resell without having to pay sales tax. You can use the resale certificate as evidence that you are buying products for resale and not for personal use.
There are no local sales taxes in Vermont, and the sales tax rate is 6% of the transaction price. This implies that you must collect and return 6% sales tax to the Vermont Department of Taxes if you sell goods or services in Vermont. Online registration for a Vermont Sales Tax Account is possible, and a certificate of registration will be sent to you.
In Vermont, though, not all goods are subject to sales tax. Groceries, prescription drugs, and medical equipment are a few goods that are free from sales tax. In addition, some services, such legal and accountancy services, are excluded from sales tax.
There is no need for a business license if you intend to sell on Etsy in Vermont. However, if you sell taxable goods in Vermont, you must still collect and submit sales tax. It is significant to note that you might not need to collect sales tax if you are selling on Etsy as a hobby rather than a business, but it is always wise to verify with the Vermont Department of Taxes.
Last but not least, with a few exceptions, apparel is taxable in Vermont. Sales tax is not applied on clothing made for sporting or protective purposes, such as ski jackets. Additionally, apparel purchases under $110 are excluded from paying sales tax.
In conclusion, you might need to gather and send sales tax if you are selling goods or services in Vermont. If you are a reseller, wholesaler, or retailer in Vermont, you must also get a resale certificate. To avoid any penalties or fines, it’s crucial to stay current on tax rules and regulations.