Vermont Sales & Use Tax 2025
Vermont Sales Tax Guide for SaaS and E-Commerce Businesses 2025
2025-09-18
Vermont imposes a 6% state sales & use tax on taxable sales. Some municipalities may impose an additional 1% local option sales tax under state law.
Authorities: 32 V.S.A. ch. 233
This guide explains Vermont’s treatment of SaaS (vendor-hosted prewritten software), digital products, economic nexus thresholds, marketplace facilitators, sourcing, and filing rules, with citations to Vermont statutes.
Last updated: September 2025
Quick Reference: Vermont Sales & Use Tax (2025)
| Topic | Details |
|---|---|
| State base rate | 6% (see sales tax chapter). 32 V.S.A. ch. 233 |
| Local rates | Up to 1% municipal local option sales tax where adopted. |
| Economic nexus | $100,000 in VT sales or 200 separate transactions in the current or preceding calendar year. 32 V.S.A. § 9701 (find “(9)(F)” and look for “$100,000… or 200 individual sales transactions”) |
| SaaS / Cloud | Taxable. “Prewritten computer software,” whether delivered electronically, on physical media, or accessed remotely, is tangible personal property. 32 V.S.A. § 9701 (find “(7) Tangible personal property” then search “prewritten computer software” in that paragraph) |
| Digital products | Specified digital products are taxable (e.g., digital audiovisual works, audio works, books). 32 V.S.A. § 9701 (find “(46) Specified digital products”; “(45) Transferred electronically” defines delivery method) |
| Delivery/Shipping | Taxable as part of the sales price (includes shipping, handling, and delivery charges). 32 V.S.A. § 9701 (find “(4)(A)(iv) sales price” and “(26) Delivery charges”) |
| Sourcing | Destination-based (Vermont follows Streamlined rules). VT Dept. of Taxes — TB-72 (Sourcing) |
| Filing due date | Returns are generally due by the 25th day after the end of the filing period (monthly/quarterly/annual as assigned). 32 V.S.A. § 9775 |
| Registration | Register, file, and pay via myVTax. myVTax |
SaaS & Software Taxability in Vermont
Vermont SaaS sales tax applies to charges for access to prewritten computer software hosted by the vendor (SaaS/ASP). Vermont’s statute defines prewritten software as tangible personal property regardless of whether it is delivered electronically, on a physical medium, or accessed remotely.
Authority: 32 V.S.A. § 9701 (find “(7) Tangible personal property” and look for the sentence including “prewritten computer software… accessed remotely”)
Downloaded software is also taxable (same statutory definition).
Digital Products
Vermont taxes specified digital products, including digital audiovisual works, audio works, and books, when transferred electronically to an end user.
Authority: 32 V.S.A. § 9701 (find “(46) Specified digital products”; see also “(45) Transferred electronically” and “(47) End user”)
E-Commerce & Tangible Goods in Vermont
| Category | Taxable? | Notes / Authority |
|---|---|---|
| Tangible personal property | Yes | 6% state; plus 1% local option where adopted. 32 V.S.A. ch. 233 |
| Prewritten software (downloaded or remotely accessed) | Yes | Software is taxable whether delivered electronically, on media, or accessed remotely. 32 V.S.A. § 9701 (find “(7) Tangible personal property” → “prewritten computer software”) |
| Specified digital products (e-books, music, video) | Yes | Taxable digital products as defined in statute. 32 V.S.A. § 9701 (find “(46) Specified digital products”) |
| Shipping / delivery / handling | Yes | Included in sales price (shipping, handling, delivery). 32 V.S.A. § 9701 (find “(4)(A)(iv) sales price” and “(26) Delivery charges”) |
Who Must Register and Collect Vermont Sales Tax?
You must register and collect if you have:
- Physical nexus in Vermont, or
- Economic nexus: $100,000 in gross revenue from Vermont sales or 200 or more separate transactions in the current or preceding calendar year.
Authority: 32 V.S.A. § 9701 (find “(9)(F)” for the $100,000/200-transactions standard; “(9)(J)” and “(9)(K)” address marketplace roles)
Marketplace facilitators are responsible for collecting and remitting tax on marketplace sales as provided in statute.
Authority: 32 V.S.A. § 9713
Sourcing & Local Option Tax
Vermont is a Streamlined Sales Tax state and uses destination-based sourcing for delivered goods and many services; apply the customer’s ship-to/receipt location and include any municipal 1% local option where applicable.
Reference: VT Dept. of Taxes — TB-72 (Sourcing)
Filing & Due Dates
- Register & file: Use myVTax to register, file returns, and pay.
Link: myVTax - Filing frequency: Assigned by the Department (monthly, quarterly, annual).
- Due date: Returns are generally due by the 25th day after the end of the filing period; small liabilities may file annually by January 25.
Authority: 32 V.S.A. § 9775
How to Register for Vermont Sales Tax
- Determine nexus (physical or $100,000/200 economic nexus).
- 32 V.S.A. § 9701 (find “(9)(F)”)
- Register and obtain a sales & use tax account.
- Charge the correct rate: 6% state + 1% local option where applicable.
- File returns on your assigned schedule; remit by the 25th.
FAQs: Vermont Sales Tax
Is SaaS taxable in Vermont?
Yes. Prewritten computer software is taxable even when accessed remotely (SaaS).
Authority: 32 V.S.A. § 9701 (find “(7) Tangible personal property” → “prewritten computer software”)
Are digital products (e-books, music, video) taxable?
Yes. Vermont taxes specified digital products transferred electronically.
Authority: 32 V.S.A. § 9701 (find “(46) Specified digital products”; see “(45) Transferred electronically”)
What is Vermont’s economic nexus threshold?
$100,000 in sales or 200 transactions in the current or preceding calendar year.
Authority: 32 V.S.A. § 9701 (find “(9)(F)”)
Are shipping and delivery charges taxable?
Yes. Delivery charges are part of the taxable sales price.
Authority: 32 V.S.A. § 9701 (find “(4)(A)(iv) sales price” and “(26) Delivery charges”)
Official Vermont Resources
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