Sales Tax Obligations of Purchasers in Vermont

April 13, 2006

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Vermont imposes various requirements on purchasers doing business in Vermont. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. In Vermont the burden of proving that a sale of tangible personal property is for resale is upon the person making the sale. The seller is relieved of this burden of proof if the seller requires a resale certificate from you the purchaser.

Resale exemption certificate. In Vermont a general exemption certificate is prescribed by the state. The resale exemption certificate must include the following information:

your name as the purchaser
your address
your signature
a description of the articles purchased
a certification that the property will be used for an exempt purpose
the number from your certificate of authority

In no case can the seller sell tax exempt goods for resale, unless you specify in your order, whether written or oral, that the goods are purchased for resale. Invoices of goods sold for resale must be marked or stamped to indicate that they are exempt purchases. The words "Vermont Sales Tax Exempt, for Resale" will satisfy this requirement.

Blanket resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or services for processing or resale. However, blanket certificates may not be used to purchase property or services not covered by a blanket certificate. You must check the box on the state form for a blanket resale certificate. You must include a general description of the kind of property to be purchased for resale on the blanket resale certificate. Your blanket certificate is valid until revoked in writing. If a seller has not accepted a blanket certificate in good faith, liability for the tax does not shift from the seller to you, the purchaser.

Purchases from out-of-state vendors. Property brought into Vermont on which a sales or use tax has been paid in another state equal to or in excess of the Vermont tax is not subject to tax in Vermont.