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Streamlined Sales Tax
The majority of states with sales tax and the businesses who sell into most of these states developed an agreement to simplify sales tax administration for states and to reduce the burden of tax compliance for businesses. The Agreement primarily focuses on businesses with limited or no connection that sell to the states’ citizens through mail order, catalogs and the Internet.
States must apply for membership to the Streamlined Sales Tax Project. Vermont became a member as of January 1, 2007.
Through the Streamlined Sales Tax agreement, businesses get:
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A uniform definition of taxable items. Items subject to sales tax will be the same in all states at both the state and local option level
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A central, electronic registration system for all member states
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One account number for use in all states
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Simplified tax returns and reporting
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Simplified tax remittances options
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Ability to protect their customers’ privacy
Through the Streamlined Sales Tax agreement, the states get:
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Revenue that would otherwise be lost to the state
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Businesses collecting the sales tax for the state where the sales are to be delivered even if the business has limited or no physical connection with that state
NOTES:
1) The Streamlined Governing Board amended the Streamlined Sales Tax Agreement (SSTA) by eliminating the provision regarding Multiple Points of Use (MPU). Since it is Vermont's intent to conform to the SSTA, of which it is a member, the Vermont regulation that paralled the MPU provison, §1.9701(8)-4, will be removed from the regulation and will not be enforced.
2) Wireless prepaid:
Vermont sources the sale of wireless prepaid calling services in accordance with Section 310 of the “Streamlined Sales and Use Tax Agreement,” which includes as an option the location associated with the mobile telephone number. (Click here to view Section 310)
3) Ancillary services:
The sale of directory assistance is a taxable ancillary service and is sourced to the customer’s place of primary use, in accordance with Section 314 of the “Streamlined Sales and Use Tax Agreement.” Vermont sales and use tax is not imposed on other ancillary services, as defined in
32 V.S.A. § 9701(42).
Click below to view information on:
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Vermont Rate and Boundary tables will be reposted by the first day of the month preceding the beginning of the next quarter. |
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