Vermont Account Stated for Construction Work
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FAQ
Food, food products, and beverages are exempt from Vermont Sales and Use Tax under Vermont law 32 V.S.A. § 9741(13) with the exception of soft drinks.
Services are generally tax-exempt in Vermont, though there are exceptions: Services to tangible personal property. If labor is expended in producing a new or different item, a tax applies to the labor charge.
When contractors purchase, rent, or lease equipment and use it in Vermont, it is always subject to Vermont Sales Tax. Tax applies even when contractors use equipment on exempt projects. If the contractor does not pay 6% sales tax at the time of purchase, the contractor must pay Vermont Use Tax.
Vermont Sales Tax is charged on the retail sales of tangible personal property unless exempted by law. The sales tax rate is 6%. Vermont Use Tax is imposed on the buyer at the same rate as the sales tax.
Tax Rate. The Vermont Sales and Use Tax is 6%. To determine tax due, multiply the sales amount by 6% (or 7% if the sale is subject to local option tax), and round up to the nearest whole cent ing to the following rules: Tax computation must be carried to the third decimal place, and.
