Changes in the Vermont Sales Tax Nexus

December 30, 2020

After the South Dakota v. Wayfair, Inc. decision, Vermont expanded sales tax collection requirements to include remote sellers. The Green Mountain State largely followed suit with South Dakota’s requirements outlined in the Supreme Court case, maintaining that a business that meets either a certain monetary or a transactional threshold has an obligation to collect and remit sales tax. We have outlined the major points in the Vermont sales tax nexus below.

Enforcement date:
July 1, 2018.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous 12 months.

Included transactions/sales:
Retail sales delivered into the state.

When You Need to Register Once You Exceed the Threshold:
Review sales at the end of each quarter to determine if the threshold was met during the prior 12 months. If the threshold was met, businesses have no later than the first day of the following month to begin collecting and remitting sales tax. Thirty days are permitted to conduct the threshold analysis.

Summary: According to Vermont Act 134 of 2016, “all vendors who make sales of tangible personal property into the state above a certain threshold to collect Vermont Sales Tax on their taxable sales, even if the vendors do not have a physical presence in Vermont.” The Wayfair decision triggered Vermont’s remote seller provision, requiring certain remote sellers to collect and remit sales tax.

Remote sellers must collect and remit Vermont sales tax when they have made sales into Vermont of at least $100,000 or totaling at least 200 individual sales transactions during any preceding 12-month period.

Marketplace facilitators must collect and remit Vermont sales tax when they have made or facilitated sales into Vermont of at least $100,000 or totaling at least 200 individual sales transactions during any preceding 12-month period. Marketplace facilitators must inform sellers on its marketplaces that they will collect and remit tax on their behalf.

Remote sellers should work with the right partner to ensure that they remain compliant with all Vermont economic nexus requirements, especially as laws change.

Vermont Sales Tax Resources: Reach out to our team of experts for more information on the Vermont sales tax nexus. Also be sure to check out our interactive sales tax nexus map for real-time updates on each state.

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