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Business - Starting a Business

A Vermont business tax account is required for most businesses before operating in Vermont. Exempt Organizations must also register to receive their exemption from Vermont tax.

To receive a Vermont business tax account, complete Form BR-400. If you need assistance completing the form and help to determine what other reporting requirements may be needed for the State of Vermont, send an email to bustax@state.vt.us or call 802.828.2551.

You will receive a license for a sales and use tax account or meals and rooms tax account. The license must be displayed prominently at your place of business for customers to see. There is no charge for the license.


The following types of businesses and types of activity require you to be registered with the Department:

 

More Information:
- Business Types
- Federal Small Business / Self-Employment Info
- Interest Rates
- List of Major Vermont Taxes
- Local Option Taxes
- Regulations
- Streamlined Sales Tax
- Tax Charts
- Tax Credits
- Technical Bulletins
- Transient Vendors
- Voluntary Disclosure
- Withholding Information

Need Assistance?

Taxpayer Services
802.828.2551

 

C Corporations, S Corporations, Limited Liability Companies and Partnerships are required to apply for a Vermont Corporate or Business Entity Tax Account if:

Incorporated in Vermont, and/or
Registered with the Vermont Secretary of State's office to do business in Vermont, and
Receive income from Vermont

Businesses engaged in the following activities are required to apply for a
Vermont Sales & Use Tax Account before starting business:

Selling or renting tangible personal property in Vermont,
Selling public utility services at retail (excluding water, telephone and transportation services),
Producing, fabricating, printing (or imprinting tangible personal property for customers who supply the materials used),
Charging admission to places of amusement or recreation,
Claiming exemption from sales tax as a 501(C)(3) organization, or
Buying tangible personal property tax-free

Businesses engaged in the following activites are required to apply for a
Vermont Withholding Tax Account:

Paying wages to employees who reside in Vermont (whether or not the work is performed in Vermont),
Paying wages for services performed in Vermont (whether or not the employee resides in Vermont),
Making any other payment that is subject to Vermont income tax, or
Making payments of income that was previously deferred under a non-qualified deferred compensation plan
are required to register for Withholding tax.

Businesses engaged in the following activities are required to apply for a
Vermont Meals and Rooms Tax Account:

Selling meals, snacks, beverages or alcoholic beverages, or
Renting rooms
    - Note: If you rent your own property 15 or more days a calendar year, you must register and collect tax on all rentals.

Fuel Vendors selling $10,000 or more per year of the following fuel types at retail
must apply for a Vermont Business Tax Account:

Heating oil and/or kerosene (except when used to propel a vehicle), or
propane gas, natural gas, electricity, coal

Beginning July 1, 2004, a tax one-half cent per gallon of heating oil or kerosene is imposed on every seller receiving more than $10,000 annually for the retail sale of heating oil or kerosene not used to propel a motor vehicle. Monies from this tax will be deposited into the petroleum cleanup fund to fund cleanup and restoration of contaminated soil and groundwater caused by releases of petroleum from storage tanks and to pay third party claims for compensation.

The tax terminates April 1, 2011.

Businesses making the following sales must apply for a
Vermont Business Tax Account:

Retail sales of telecommunication services provided to a Vermont service address are subject to the telecommunication sales tax.

This tax is imposed on the telecommunication purchases collected by the telecommunication service provider.

The following Vermont towns have Local Options Sales Tax and/or Local Option Meals and Rooms Tax:

City/Town

1% Sales Tax

1% Meals Tax

1% Rooms Tax

Brattleboro

 

Burlington

 

 

Dover

Killington

*

*

*

Manchester

***

Middlebury

*

*

*

Rutland Town

**

**

**

S. Burlington

Stowe

 

Stratton

Williston

* Effective October 1, 2008
** Effective April 1, 2009
***
Effective July 1, 2009

Local Option Sales Tax and Local Option Meals and Rooms Tax are administered by the Vermont Department of Taxes.

Click here for more information on Local Option Taxes

Charter Taxes

Some city charters allow imposition of meals, lodging and entertainment taxes. These taxes are administered by the city. Contact the city clerks for information. Cities that have these taxes include:

City of Burlington  802.865.7018
City of Rutland  802.773.1801

Vermont Department of Taxes, 133 State Street, Montpelier, Vermont 05633-1401