State of Vermont Agency QfAdministra?on
Department of Taxes

State Street

VT 0563371401

Aug lg, 2017
Letter ID:

Account ID:
Tax:

   

Dear Taxpayer:

Do you make purchases over the internet'fI Do you buy items, other than food or clothing, in a state that
does not have a sales tax? If so, there is a good chance you owe Vermont Use Tax.

Why am I getting this letter?

We are sending you this letter because our records show you did not report any Vermont Use Tax on
your most recent personal income tax returns (20l 4, 2015, and 2016). li?you have not paid the right
amount of use tax, the Vermont Department ol?Taxes is giving you this opportunity to correct prior year
use tax amount?without penalty or interest.

What is Vermont Use Tax? Please note: Act 73 of 2017
Since the Vermont Sales Tax was enacted into law in 1969, there has requires vendors to report
always been a ?compensating use tax.? When a seller does not charge certain transactions on WhiCh no
the buyer sales tax on an item taxable in Vermont, the buyer must pay sales tax was paid to the
Vermont Use Tax. Taxable items sold over the internet, by mail-order, Vermont Department Of Taxes.
by phone, or bought out-of-state, such as in New Hampshire, and used in Included in these reports is
Vermont generally qualify. The sales and use tax rate is the same: buyer information which Will be

used in compliance efforts.

What do I need to do?

1. Review all the information in this mailing. See the use tax FAQs on the back ofthis letter.

2. If you determine you underreported your use tax, you can make a payment?free of penalty and
interest through Oct. 31, 2017 by going to and clicking ?Pay Use
Tax" on the home page. The myVTax website will guide you through computing your use tax
liability. It?you don't have records ofyour purchases available, the website will help y0u estimate
your liability.

3. It'you can determine you do not owe use tax, you do not need to take any action.

If you have questions about this letter, call us 7:45 am. - 4:30 pm. on Monday, Tuesday, Thursday, and
Friday. You may also email us. Contact information is listed below.

See more information on our website at vermont. gov.
Vermont Department of Taxes Phone: (802) 828-2865

lndividual Income Tax Section (866) 828-2865 (Toll?Free in Vermont)
Email: tax.use@vermont.gov

Aug 18, 2017 Page 2 Letter ID: 

Vermont Use Tax: Frequently Asked Questions

What is Vermont Use Tax?

When a seller does not charge the buyer Vermont Sales Tax on an item taxable in Vermont. the buyer
must pay Vermont Use Tax. Taxable items sold over the internet, by mail-order, by phone, or bought
out?of?state and used in Vermont generally qualify.

Vermont Sales Tax and Vermont Use Tax work together to ensure Vermont taxpayers pay the right
amount of tax to help support the services the state provides to Vermonters. Sales and use tax applies to
individuals (residents and nonresidents) and businesses. Use tax has the same rate of rules, and
exemptions as sales tax.

Vermont Sales and Use Tax is ?destination?based.? One of the following must happen for the purchased
item to be subject to sales and use tax:

the buyer takes possession ofthe item in Vermont

the buyer has the item delivered or shipped to Vermont

- the buyer purchases the item outside of Veimont and then brings it into Vermont to use

Why does Vermont have a use tax?

Use tax helps our businesses in Vermont compete with online businesses and businesses in states, such as
New Hampshire, that do not have a sales tax or a lower sales tax. It ?levels the playing field," so to speak,
creating a fairer marketplace for businesses in Vermont. Other states impose use tax for the same reason.

Do I have to pay use tax?
Yes. Under Vermont law at 32 V.S.A. 9773, individuals and businesses must pay Vermont Use Tax.

How do I know when to pay use tax?
Ask yourself these questions:
1. Is the item purchased subject to Vermont Sales Tax? Ifyes, continue to question 2. lfno, there is no
use tax to pay.
2. Was the item you purchased delivered to Vermont did you take possession of the item in
Vermont did you bring the item into Vermont? lt?ycs to any one of these situations, continue to
question 3. If no to all three of the situations, there is no use tax to pay.
3. 3. Did the seller charge 6% Vermont Sales Tax? Ifycs, there is no use tax. lino, you must pay use
tax.

b. Did the seller charge sales tax at a lower rate than If yes, you owe the difference. If the seller
charged you a higher rate, then you do not owe use tax.

How do 1 know if something 1 buy is subject to Vermont Use Tax?

Under Vermont law, ?tangible personal property? is taxable unless speci?cally exempted, such as most
clothing and food. ??Tangible personal property? means personal property which may be seen, weighed.
measured, felt, touched or in any other manner perceived by the senses.? 32 V.S.A. 9701(7)

It is impossible to list every item subject to Vermont Sales and Use Tax sold in the an ever?evolving
marketplace, but many categories of tangible personal property are listed in Vermont statute and
regulation. If in doubt about an item you?ve purchased, contact the Department at 802-828-2551.
For more information on Vermont Use Tax and FAQS, visit 

AVERMON 

 

wwviaxvermontgov