State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Vermont (VT)

VT Sales Tax - Name of Tax and General Application:

Vermont imposes a tax on the sale of tangible personal property and certain services sold at retail in the state. This tax is known as a "sales tax". In addition a tax is imposed on use of tangible personal property purchased at retail in the state. This tax is known as a "use tax" and only applies when no sales tax has been paid.

VT Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Vermont imposes nexus on an out-of-state vendor that regularly or systematically solicits sales in the state by TV, mail, telephone, computer database, cable, or other communication system. However, an out-of-state vendor must have Vermont sales of at least $50,000 in any 12-month period to result in nexus.

VT Local Tax - Do Localities Impose Tax?

Yes, Vermont imposes local sales tax.

VT Resale Certificate Renewal Agreements:

Sales for resale are not taxable and are excluded from the taxable definition of "retail sale." An exemption certificate is required.

VT Resale Certificate Renewal Periods

Certificates are valid indefinitely.

VT Statute of Limitations

Later of three years from: the date the return was due or from the date the return was filed. If tax was understated by 20% or more, the period of limitation becomes six years from the date the return was filed.