New Sales and Use Tax Implications of Prepaid Calling Cards
In an effort to fund improvements to broadband Internet service in Vermont and to keep it affordable for Vermonters, there is now going to be a Universal Service Charge (USC) on prepaid calling cards beginning Jan. 1, 2020.
To better conform to federal requirements, sellers of prepaid calling cards will be required to collect the USC of 2.4%. The responsibility is entirely that of the seller of the card, not the service provider (unless the provider is the retail seller).
The USC can be paid at myVTax.vermont.gov at the same frequency Sales and Use Taxes are normally filed and paid. The first time filing Form SUT-451 (Vermont Sales and Use Tax Return) in 2020, filers will be asked whether they collect USC.
For more information visit https://www.tax.vermont.gov/business-and-corp/universal-service-charge.
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