Contact Us

How to Get a Seller’s Permit in Vermont

  • Compliance
Published on March 27, 2024
 Learn how to register your business in the state and obtain a Vermont use tax with our step-by-step guide.
Starting a business in Vermont is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Vermont.
 This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
   Related Topics:  

Who Needs a Seller’s Permit in Vermont?

A business must register for a sales tax permit in Vermont if:

How to Register for a Seller’s Permit in Vermont?

When applying for a Vermont Use Tax permit, you can use the online application process on the Vermont Department of Taxes website to complete your sales tax registration.
  

1. Where to Apply for a Seller’s Permit in Vermont?

The first step to register for a sales tax permit online is to go to myVTax and click on “Sign Up” found at the bottom of the login section under “Need An Account?”
 You will be directed to a new page and under the “For Businesses and Corporations” section, you will click on  “Click here if you are a business taxpayer who would like to register your tax accounts or add myVTax access for accounts that are already registered with the Department.”
 You will be prompted with a question that asks you to select an option that best describes your situation. You will need to choose between these options:
  • Option 1: “I know what tax accounts I need to register or add myVTax access for.”
  • Option 2: “I am unsure what tax accounts I need to register or add myVTax access for, and I would like more information.”
Since you know you are registering for a seller’s permit in Vermont, you will choose the first option.
 You will then follow through the prompts that walk you through your registration process and provide the necessary information. Under the account section, check “Sales and Use Tax” and any other applicable tax accounts for your business.
When you go through the Sales and Use Tax Attributes section, you will notice a prompt that will ask you, “Are you registering under VT’s economic nexus law (Act 134 of 2016) which went into effect following the Supreme Court of the United State’s decision in South Dakota v.Wayfair, Inc., et al.?” If you’re registering as an out-of-state/remote seller with no physical presence and because you meet economic nexus, you will select “Yes.”
 During your registration process, you will create an online login account with the state. Once your logon is created and your sales tax application is approved, you can manage your current sales tax account(s) and register for additional accounts related to your business.
  

2. What Information Do You Need to Get a Seller’s Permit in Vermont?

To successfully acquire a seller’s permit in Vermont, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Vermont:
  • Business Identification Information: Legal Business Name, Physical Address, Mailing Address 
  • Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
  • Federal Employer Identification Number (EIN or FEIN)
  • Name, Address, and SSN of Owners, Partners, or Officers
  • Business Activity Details: Date & State of Incorporation, Start Date with Vermont (Nexus Start Date), Estimated Quarterly Sales Tax Liability in Vermont
  • NAICS Code
 

3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Vermont?

Registering for a sales tax permit in Vermont is free, and you won’t need to provide payment details to acquire your permit.
 The state sales tax permit does not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.
  

4. What are Other Ways to Register for a Seller’s Permit in Vermont?

  • Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
 

What’s Next?

After your online submission, you will see a confirmation page confirming that your request for a sales tax permit has been submitted. This page will also include your confirmation code to access your application request.
 The Department of Vermont will send you an email telling you if your registration is approved, under review, or has been denied. If your sales tax registration is approved, you will receive an email with a username and a link to access myVTax to manage your sales tax account. You will be able to log in and see your sales tax permit, and file and pay any sales tax returns.
 You will also receive a paper copy of your Sales Tax Permit and a letter that includes your Letter ID and Taxpayer ID in 7 to 14 business days at the mailing address provided during your registration process.
 Obtaining a  Sales and Use Tax License requires you to collect sales tax for eligible sales in Vermont. The document will also specify your filing frequency for sales tax returns and due dates.
 Remember that if your business has a physical location in Vermont, the Seller’s Permit must be visibly displayed at all times at the place for which the certificate is issued.
 If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.