How to Register for a Vermont Sales Tax Permit

To register for a Vermont sales tax permit, create an account at myvtax.vermont.gov and submit a free application for a Sales and Use Tax License with the Vermont Department of Taxes before your first taxable sale.¹ There is no fee, and once the Department approves your application it mails you a license that must be displayed where customers can see it.² The state rate is 6%, with an additional 1% in municipalities that have adopted a local option tax.³

Who Has to Register

Registration turns on whether your business has nexus with Vermont. Physical nexus is the obvious trigger: an office, warehouse, retail location, or employees in the state means you need a permit.

Remote sellers with no Vermont presence still have to register and collect sales tax if, during any 12-month period, they make at least $100,000 in gross sales into Vermont or at least 200 individual transactions with Vermont buyers. Hitting either threshold is enough.⁴ The 12 months are rolling, so track your Vermont totals continuously rather than waiting for year-end.

One boundary worth knowing before you apply: if you sell exclusively through a marketplace facilitator like Amazon or Etsy that certifies it collects Vermont sales tax, those marketplace sales fall under 32 V.S.A. § 9713 and don’t count toward your own filing obligation.⁵ Sales through your own website or other direct channels still count toward the thresholds and still require your own registration.

What to Gather Before You Apply

Have the following ready before you open the application:

Your Federal Employer Identification Number. Sole proprietors without employees may use a Social Security Number instead.
Social Security Numbers for each owner, partner, or officer.
Your business’s physical address and a separate mailing address for tax correspondence.
A description of your business activity, chosen from categories such as manufacturer, wholesaler, retailer, restaurant, construction, or service provider.
The date you were authorized to do business in Vermont. If you registered with the Secretary of State, use that authorization date.
A designated contact person with phone number and email.⁶

The application also asks which tax accounts you want to open. If you sell meals, rent rooms, or sell alcoholic beverages, add those accounts in the same application rather than filing separately later.

How to Submit the Application

Go to myvtax.vermont.gov and click “Sign Up” to create a myVTax account, then follow the guided prompts to enter your business information and request a Sales and Use Tax License.¹ The system walks through each field and issues a confirmation when you submit. The Department strongly encourages online registration because it’s faster than paper.⁶

If you’d rather file on paper, mail your application to the Vermont Department of Taxes, 133 State Street, 1st Floor, Montpelier, VT 05633-1401. Paper takes longer because staff have to key the data in by hand.⁷

Registration itself is free. Once approved, you’ll receive your license by mail, and it has to be displayed at your place of business where customers can easily see it.² The license carries the account number you’ll use for every future return and piece of correspondence with the Department.

Filing Frequency and Due Dates

The Department assigns your filing frequency when you register and adjusts it based on your prior year’s liability. Businesses with annual sales tax liability above $500 file monthly. Those at or below $500 file quarterly.⁸

Monthly returns are due by the 25th of the following month, except February, which is due the 23rd. Quarterly returns are due April 25, July 25, October 25, and January 25 for the preceding calendar quarter.⁸ File every period, even when sales were zero. A skipped zero-dollar return can draw a late filing penalty on its own.

If you sell into any municipality with a local option tax, your return will include separate lines for those amounts, and any return that includes local option tax must be filed through myVTax.⁹

Handling Resale and Exempt Buyers

Once you’re licensed, some sales to other businesses won’t carry tax. A buyer purchasing goods for resale can present a Vermont Sales Tax Exemption Certificate (Form S-3) to buy without paying tax. You should obtain the certificate before or at the time of sale, though Vermont gives you a 90-day grace period to collect a fully executed form after the transaction.¹⁰

To accept a certificate in good faith, confirm it’s signed, dated, and complete, and that the goods being purchased are the kind normally used for the stated exempt purpose. Keep certificates on file for at least three years from the date of the last sale they cover. If an auditor asks for the certificate and you can’t produce it, the Department will assess the uncollected tax against you.¹⁰

What Happens If You Don’t Register or File on Time

Vermont enforces its sales tax rules on two tracks. The financial track covers late filing and late payment. A late return draws a penalty of 5% of the unpaid tax for each month or partial month it’s overdue, capped at 25% of the total tax due. File more than 60 days late and you owe at least a $50 minimum penalty even if no tax was due. Late payment of non-income taxes carries the same 5% monthly rate. Interest runs on top of penalties at 7.75% annually for the 2026 calendar year.¹¹¹²

The second track is criminal. Knowingly operating a business that requires a sales tax license without holding one is a misdemeanor, and each week of unlicensed operation counts as a separate offense. A first offense carries a fine of up to $250 and up to 60 days in jail. A second or subsequent offense carries a fine of $250 to $500 and up to six months in jail.¹³ Prosecution is rare for honest oversights, but the statute is there for businesses that deliberately avoid registering.

1
Vermont Department of Taxes. Register for a Business Tax Account
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Vermont Department of Taxes. Sales and Use Tax – Getting Started
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Vermont Department of Taxes. Sales and Use Tax
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Vermont Department of Taxes. Sales Tax and Wayfair – Frequently Asked Questions
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Vermont General Assembly. Vermont Code 32 9713 – Marketplace Facilitators and Marketplace Sellers
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Vermont Department of Taxes. Start or Buy a Business
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Vermont Department of Taxes. File and Pay
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Vermont Department of Taxes. Sales and Use Tax – Frequently Asked Questions
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Vermont Department of Taxes. Local Option Tax
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Vermont Department of Taxes. Form S-3 Instructions
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Vermont General Assembly. Vermont Code 32 3202 – Penalties and Interest
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Vermont Department of Taxes. Interest Rates
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Vermont General Assembly. Vermont Code 32 9814a – Criminal Penalties