Vermont Sales Tax Registration

In Vermont it is called the Sales and Use Tax License. The Vermont Department of Taxes issues it.

Who has to register in Vermont, how to apply, what it costs, how long it takes, and what you file once you have it.

Vermont sales tax registration at a glance

What it is called: Sales and Use Tax License; Full name: Sales and Use Tax License (Vermont Business Tax Account). Number issued: Vermont Sales and Use Tax Account Number.
Who issues it: Vermont Department of Taxes; Apply online through myVTax (Sign Up), or the Secretary of State's online business registration portal. Paper form: Form BR-400.
State fee: No state fee; Registration is free. The Commissioner issues the license without charge.
Processing time: No firm estimate; The paper BR-400 says to allow two weeks for processing and to contact the Department for expedited processing. The Department says online registration is faster but gives no figure.
Remote seller threshold: $100,000 in sales or 200 transactions; Measurement period: the 12-month period preceding the monthly period for which liability is determined. In effect since July 1, 2018.
Filing frequency: Monthly, quarterly or annual by prior-year liability; Prior calendar year liability of $500 or less: annual. More than $500 but less than $2,500: quarterly. Otherwise monthly. The Commissioner may set other periods. E-filing is required for local option tax sellers, multi-location sellers, and sellers who remitted more than $100,000 in the prior year.
State rate: 6%; 1% local option sales tax in municipalities that adopt it (7% combined).

How to register in Vermont

Where to apply: Apply online with the Vermont Department of Taxes. myVTax (Sign Up), or the Secretary of State's online business registration portal
Application form: Form BR-400, Application for Business Tax Account. Form BR-400 (PDF)
What you need: Business entities register with the Vermont Secretary of State first; its online portal can register the business for sales and use, meals and rooms, and withholding tax accounts at the same time. Each of those taxes is a separate account.
How long it takes: The paper BR-400 says to allow two weeks for processing and to contact the Department for expedited processing. The Department says online registration is faster but gives no figure.
What it costs: Registration is free. The Commissioner issues the license without charge.
Renewal: You do not renew a business tax account with the Department of Taxes (Secretary of State annual reports are separate).

After you register

How often you file: Monthly, quarterly or annual by prior-year liability. Prior calendar year liability of $500 or less: annual. More than $500 but less than $2,500: quarterly. Otherwise monthly. The Commissioner may set other periods. E-filing is required for local option tax sellers, multi-location sellers, and sellers who remitted more than $100,000 in the prior year.
Due date: 25th of the month after the period (23rd in February); annual returns January 25.
Periods with no sales: You still file a return for every period, even with no sales.
Rates and sourcing: The state rate is 6%. 1% local option sales tax in municipalities that adopt it (7% combined). Sourcing: destination. Where the buyer takes possession or the item is delivered.
Late returns: 5% of the unpaid tax for each month or part of a month the return is late, up to 25%. If the return is more than 60 days late, a minimum $50 penalty applies even when no tax is due. Interest is charged separately.

Vermont rules in plain English

In Vermont you need a sales and use tax license, issued through a Vermont business tax account. The Vermont Department of Taxes issues it. Register online through myVTax or the Secretary of State's business registration portal. If you cannot go online, mail or fax Form BR-400, Application for Business Tax Account, and allow about two weeks. Registration is free, and you do not renew the account. You need a separate license, displayed at each location. Sellers outside Vermont must register once they reach $100,000 in sales or 200 transactions into Vermont in the prior 12 months. They have 30 days to register. The state rate is 6%. Some towns add a 1% local option tax, based on where the buyer receives the item. Clothing and food are exempt, but software, including software used online, is taxable. The Department sets your filing schedule from last year's tax: annual at $500 or less, quarterly under $2,500, and monthly above that. Returns are due on the 25th of the month after the period, or the 23rd in February. The mistake to avoid: skipping a return when you owe nothing. A return more than 60 days late draws a $50 minimum penalty even with no tax due.

Sources: Vermont Department of Taxes · myVTax (Sign Up), or the Secretary of State's online business registration portal · Form BR-400 (PDF)

More Vermont facts

Since July 1, 2024 all prewritten software is taxable in Vermont, including software accessed remotely (SaaS). The earlier exemption for remotely accessed software ended June 30, 2024 (Act 183 of 2024). Source
Clothing, footwear and food are among the items exempt from Vermont sales tax. Source
Vermont still counts transactions: a remote seller must register at $100,000 in sales or 200 transactions in the prior 12 months. Source
Businesses with more than one location need a separate license for each location but should use one myVTax account. Vendors with no permanent location, such as cart vendors, may use one license. Source
Vermont is a Streamlined Sales Tax member state; the SST exemption certificate is accepted alongside Form S-3. Source

We register you in Vermont

Answer a few questions about your business. We prepare your Vermont Sales and Use Tax License application, file it with the Department of Taxes, and send you the number. $199 per state. Any state fee is separate.

Start my Vermont registration

Vermont sales tax registration FAQ

Do I need to register for Vermont sales tax?

Every person required to collect Vermont sales tax, including any business with a place of business in Vermont, must get a license before starting business or opening a new location, with a separate license displayed at each location (32 V.S.A. 9707). Sellers with no physical presence must register after $100,000 in sales or 200 transactions in Vermont (measurement period: the 12-month period preceding the monthly period for which liability is determined).

How long does it take to get a Vermont Sales and Use Tax License?

The paper BR-400 says to allow two weeks for processing and to contact the Department for expedited processing. The Department says online registration is faster but gives no figure. Source: Form BR-400 (Rev. 08/25), p. 3.

What does a Vermont Sales and Use Tax License cost?

Registration is free. The Commissioner issues the license without charge. Source: 32 V.S.A. 9707(a); Vermont FS-1017 (rev. Aug. 2024). Our fee to prepare and file the application is $199.

When do I file Vermont sales tax returns?

Filing frequency: monthly, quarterly or annual by prior-year liability. Prior calendar year liability of $500 or less: annual. More than $500 but less than $2,500: quarterly. Otherwise monthly. The Commissioner may set other periods. E-filing is required for local option tax sellers, multi-location sellers, and sellers who remitted more than $100,000 in the prior year. Due date: 25th of the month after the period (23rd in February); annual returns January 25. File a return every period, even with no sales. Source: 32 V.S.A. 9775(a), (b); Vermont FS-1017 (rev. Aug. 2024), 'Always File'.

Do I need to register in Vermont as a remote seller?

Sellers with no physical presence must register after $100,000 in sales or 200 transactions in Vermont (measurement period: the 12-month period preceding the monthly period for which liability is determined). Since June 1, 2019 a marketplace facilitator that facilitated at least $100,000 or 200 transactions of sales into Vermont in the preceding 12 months must collect and remit on its marketplace sellers' Vermont sales (32 V.S.A. 9701(9)(J)). Source: 32 V.S.A. 9701(9)(F); Act 134 of 2016; Vermont Department of Taxes, Sales Tax and Wayfair FAQs.

Nearby states

This page summarizes Vermont sales tax registration rules for general information and is not tax advice. Confirm current requirements with the Vermont Department of Taxes or your tax adviser. State rules last checked October 2, 2026.