What is a Vermont resale sales tax exemption certificate?

A Vermont resale sales tax exemption certificate is a document that allows businesses to purchase or rent property or products tax-free. The certificate is valid for one year and must be renewed annually by businesses to maintain the exemption.

There are certain purchases or rentals that can be made without paying sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.

If you resell an item that you’ve purchased, you may need to report use taxes on the item. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.

How to get a Vermont resale sales tax exemption certificate??

To make the form valid, the purchaser doesn’t need to highlight any of the bullet points. All that is required is to fill out the form and sign it. Keep in mind though that the address on the certificate does not need to match up with your company’s location address; it just needs to have your proper business name listed and be current.

If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.