Set Up Vermont Returns
Tell Us Where You Collect Tax
Add Vermont to the places where you collect tax. This tells AvaTax to calculate tax on Vermont transactions. See the Vermont Department of Taxes website for details about nexus, registration, and taxes in Vermont.
Before you add Vermont, there are two things you need to do:
- Make sure you have nexus in Vermont. In some states, you may have economic nexus if you're a remote seller.
- Register with the Vermont Department of Taxes
You may be responsible for an additional local option tax based on the destination of the sale. These local jurisdictions don't require separate registrations and you don't have to select anything in your Where You Collect Tax settings in AvaTax for them.
You don't have to select a tax type for Vermont.
"Sourcing" determines the location where a sale is taxed. Vermont is a destination-sourced state.
Add Your Company Locations
Add any physical locations you have in Vermont. This is important for reporting on the returns.
When you add a location:
- Enter the state-assigned License Number for the location as the Business Location Account Number under Additional Information
- After you validate the location address, make sure it falls in the jurisdictions you expect. If not, you may want to manage your jurisdiction overrides.
Register each physical location in Vermont with the state. Each location you register gets a unique sales and use tax License Number.
- License numbers consist of your Vermont Business Tax Account number followed by a specific three-digit suffix which indicates the location. Example: SUT-12345678-910
- All locations can be registered under the same Business Tax Account
Schedule Your Returns
After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns.
Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.
Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.
- Select form VT SU-451 to report Vermont tax if you make sales only at a single registered Vermont location or if you are registered for out-of-state sales only in Vermont.
- Enter your state-assigned, account ID (Business Tax Account number) in the correct format. It's an eight-digit number with the prefix "SUT." Example: SUT-12345678
- Select form VT SU-451 OUTLET to report Vermont tax for multiple locations, in-state or out-of-state.
- Enter your state-assigned, account ID (Business Tax Account number) in the correct format. It's an eight-digit number with the prefix "SUT." Example: SUT-1234567
- If you pay sales and use tax for multiple locations or if your total sales and use tax remitted for the year exceeds $100,000, your returns must be filed and paid electronically.
- Set up your account at MyVTax. Enter your login credentials when you schedule the return so it can be filed electronically.