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Business Taxes

Transient Vendors

Transient Vendors are vendors who sell items for a limited time and have no permanent place of business at that location. Examples of places where transient vendor sales may take place are at fairs, bazaars, flea markets, art or craft shows, concerts.


Promoters of events such as flea markets, shows, exhibitions, etc. with 25 or more vendors selling taxable items must provide a list of participating vendors at least one day prior to the event for verification the vendors are registered to collect VT tax. The
list must include the vendor’s name and his or her VT tax account number. The promoter must notify the VT Department of Taxes within 10 days after the event if there are changes to the original list of participating vendors.

Fax lists to (802) 828- 5282 or as an attachment to an email to:

License Required
Anyone who sells taxable items in VT must obtain a business tax account and license from the Vermont Department of Taxes and collect and remit on those sales. This requirement applies for all sales even if the sales are for one day or regularly throughout
the year. You will receive your license after processing of your application. There is no fee for the license.
NOTE: An out-of-state retailers coming into Vermont must obtain a Vermont license. The out-of-state license is not a substitute for the Vermont license.

Application for a License
Complete VT Form BR-400. For sales tax, complete sections 1, 2 and 8. For meals tax, complete sections 1, 3 and 8. If you are in a town that has local option taxes, also complete section 6. The application is available on the department’s web site or by
calling (802) 828-2551.

Sales Subject to State Sales Tax
Sales tax must be collected on most retail sales. Most clothing and shoes are exempt from the state sales tax. Clothing accessories are taxable, for example: sunglasses, jewelry, belts, handbags, wallets. Other examples of taxable items: backpacks, sleeping bags, blankets, tools, toolbelts, auto parts, athletic cleats or clothing, rugs, art work, crafts, records, compact discs, video tapes, musical tapes, housewares. Food is not taxed under the sales tax but may be subject to meals tax.

Charges for admission to an amusement such as tickets for carnival rides, tickets for concerts, dramatic performances, or art exhibitions; charges to play a game of chance, view a curiosity or other exhibit, entrance fee to gun or sports show, are subject to sales tax.

Local Option Sales Tax
Towns may impose a 1% local option sales tax. Items subject to the State sales tax are subject to the local option sales tax. A business with a permanent location selling at a temporary location in a town with a local option sales tax is required to collect the local
option tax.

Sales subject to State Meals Tax
In Vermont, meals are subject to the meals tax.
Examples of taxable meals:
heated food or beverages
slushie cones
ice cream cones or dishes or sundaes
candied apples
cotton candy
hot dogs
french fries
onion rings
fried dough
food and beverage supplies by a restaurant
soda or other beverages by the glass/cup

Examples of food exempt from tax:
whole pies
whole cake
whole loaf of bread
individual bakery items sold three or more at a time

Local Option Meals Tax
Towns may impose a 1% local option meals tax. A business with a permanent location selling at a temporary location in a town with local option tax is required to collect the local option tax.
Local Option Meals Tax information.

Reporting and Remitting The Tax
When your application is processed, you will receive your license, a tax chart to help you calculate the correct amount of tax on your sales, and a return. The due date is printed on this return. You can also file and pay electronically on the Department’s web
site through VTBizFile. A business with a permanent location selling at a temporary location in a town with the location option tax reports the tax on their regular tax return.

NOTE: Vermont sales tax law exempts a casual sale. A casual sale is a one-time or occasional sale of property acquired by the owner for personal use and the owner does not regularly sell that type of property. Example: A homeowner selling clothes or toys
outgrown by his or her children at a garage sale or a flea market is a casual sale and exempt.

No casual sale exemption exists for sales of meals and rooms.


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?

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