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State Sends Letters to Remind Vermonters to Pay Tax on Their Online Purchases

September 19, 2017

This article in Seven Days reports that the State of Vermont has sent 20,000 letters to Vermonters who may not be paying tax on their online purchases.

 

When you buy items online, some retailers collect Vermont sales tax and some don’t. If you do not pay Vermont sales tax when you make an online purchase, then the state wants you to pay it later when you file your Vermont taxes. This is called “use tax” because it applies to purchases that are “used” in Vermont. (You pay Vermont sales tax or use tax on items that are shipped to Vermont.) Look at your online purchase receipts to see if the retailer charged you Vermont sales tax.

The Vermont Department of Taxes has more information on use tax for individuals.