Vermont Tax ID Number: How to Register, Apply, and Stay Compliant

Any business that will collect Vermont sales tax, withhold state income tax from employees, or charge meals and rooms tax needs a Vermont tax ID number, formally called a Business Tax Account Number, from the Vermont Department of Taxes. Registration is free, happens through the myVTax portal or on paper Form BR-400, and must be done before your first taxable sale or first payroll. One account number covers every state tax type you sign up for, even if you operate at multiple locations.

This number is not the same thing as a federal Employer Identification Number. The IRS issues the EIN for federal purposes; Vermont issues the Business Tax Account Number for state purposes, and you cannot substitute one for the other. You will, however, need your federal EIN (or your Social Security Number, if you’re a sole proprietor) to complete the state application.

When You Have to Register

Vermont law requires you to register before you begin any taxable activity. Collecting first and registering later is not allowed. Three triggers cover most businesses:

Retail sales of tangible goods. Vermont’s general sales tax rate is 6%, and 32 V.S.A. § 9707 requires a license for each location where you sell.¹²
Paying wages subject to federal income tax withholding. If federal withholding applies, you must also withhold Vermont income tax at the rate set by the Commissioner, which means opening a withholding account before your first payroll.³
Selling prepared food, alcoholic beverages served at bars and restaurants, or short-term lodging. The meals and rooms tax rate is 9%.⁴

Size and frequency don’t matter. A single taxable transaction is enough to trigger the obligation.

One boundary worth noting: several categories are exempt from sales tax, including food and food ingredients sold for off-premises consumption, most clothing, prescription drugs, durable medical equipment, and menstrual products.⁵ If everything you sell falls into an exempt category, confirm with the Department before deciding you don’t need a sales tax account.

Remote Sellers

You don’t need a Vermont storefront to owe Vermont sales tax. If you sell into the state from elsewhere and cross either $100,000 in sales or 200 individual transactions to Vermont buyers in any 12-month period, you are treated as a vendor and must register.⁶ Marketplace facilitators that meet the same thresholds on behalf of their sellers carry the same obligation.

What to Gather Before You Apply

The application is Form BR-400, whether you submit online or on paper.⁷ Have these ready:

Your legal business name (as registered with the Vermont Secretary of State) and entity type: sole proprietorship, LLC, corporation, or partnership.
The Social Security Number or federal EIN for each owner, partner, or corporate officer.
Your physical business location and mailing address.
The NAICS code that describes your primary activity.
The actual start date for each tax type you’re registering. Use the real date you begin collecting tax or paying wages, because that date drives your first filing deadline.

How to Apply

The fastest option is myVTax. Choose “Sign Up” on the portal homepage, create your login, then work through the business registration, selecting each tax type as you go.⁸ Registration and the sales tax license are both free.⁹

If you prefer paper, download Form BR-400 from the Department’s website, complete and sign it, and mail it to the Department of Taxes in Montpelier.⁷ Paper takes longer to process.

Multiple Locations

Operating at more than one Vermont location still produces one Business Tax Account Number, but each location needs its own sales tax license.⁹ The same is true for seasonal or pop-up sellers. Vermont doesn’t offer a separate “temporary” registration; you register normally and obtain a license for each place you sell.

Displaying Your Sales Tax License

Once the license arrives, state law requires you to display it prominently at your place of business. If you don’t have a fixed location, attach it to your cart, stand, or truck, or carry it on your person.² The license is tied to a specific location, cannot be transferred to a new owner or a different address, and must be surrendered to the Commissioner if you close that location.

Penalties for Skipping Registration or Falling Behind

Operating without registering is the most serious mistake. Once you’re registered, late filing and late payment carry separate penalties, and the Department can apply both to the same return.

Failure to file: 5% of the unpaid tax per month the return is late, up to 25%. A return more than 60 days past due without an extension carries a minimum $50 penalty even when no tax is owed.¹⁰
Failure to pay sales tax, withholding tax, or meals and rooms tax: 5% per month of the unpaid amount, also capped at 25%.¹⁰
Interest on unpaid tax, at a rate set annually by the Commissioner. For 2026, the rate is 7.75%.¹¹
Fraud: if the Department finds a taxpayer willfully intended to evade tax, the penalty is 100% of the unpaid amount.¹⁰

An extension filed before the deadline stops the filing penalty from accruing during the extension period, but it does not push back the payment deadline. If you expect to owe, pay by the original due date to avoid the payment penalty and interest.¹²

Changing, Closing, or Selling the Business

The account keeps running until you close it. If you let it sit open after you stop operating, the Department will keep expecting returns and can bill you for the ones you didn’t file.

Report changes to your business name, address, or structure through myVTax, or by filing Form B-2 (Notice of Change) if you don’t have a myVTax login. The Department may ask for supporting documentation.¹³

To close, shut down each tax account type separately through myVTax or on Form B-2, after filing every outstanding return and paying every remaining balance. If you had employees, file a final Form WHT-434 (Annual Withholding Reconciliation) with all W-2s and 1099s within 30 days of closing the withholding account. The Department also recommends notifying the Vermont Secretary of State.¹³

If you sell the business or its assets, all tax due through the closing date is your responsibility, and the buyer can request a Notice of Escrow from the Department to see whether any liabilities would follow the business.¹³ Because sales tax licenses are nontransferable, the new owner has to register for a fresh Business Tax Account Number and obtain new licenses for each location.²

1
Vermont Department of Taxes. Sales and Use Tax
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Vermont General Assembly. Vermont Code 32 – Registration
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Vermont General Assembly. Vermont Code 32 – Requirement and Rate of Withholding
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Vermont Department of Taxes. Meals and Rooms Tax
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Vermont General Assembly. Vermont Code 32 – Sales Not Covered
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Vermont General Assembly. Vermont Code 32 – Definitions
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Vermont Department of Taxes. Form BR-400
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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. Interest and Penalties
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Vermont Department of Taxes. Interest Rates
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Vermont Department of Taxes. File an Extension
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Vermont Department of Taxes. Update, Expand, or Close a Business