Vermont’s New Tax on Remote Software Sales: What You Need to Know
Starting July 1, 2024, Vermont introduced a new tax regulation affecting all remote software sales. If you’re running a business or using popular Software-as-a-Service (SaaS) products such as QuickBooks, Microsoft Office 365, Google Workspace, or Salesforce, here’s what you need to know.
Under the new law, all sales of prewritten computer software accessed remotely are now subject to a 6% sales and use tax. This change means that regardless of how you access your software—whether through a cloud-based system or online service—the tax applies.
Additionally, if your business is located in a Vermont community that levies a 1% local option tax, you’ll need to factor that in as well. So, in some areas, the total tax on these services could be 7%.
This update broadens the scope of taxable items to include remote access software that was previously untaxed. It’s important for businesses and individuals to adjust their budgets accordingly and ensure they are compliant with this new tax requirement.
Stay informed and plan accordingly to avoid any surprises in your next tax filing!
See also:
Resources:
As always, we are here to assist you in implementing these changes. Please contact us and any member of our Convergent Accounting team can assist with your questions.
This post is shared by Davis & Hodgdon CPAs as a service to our clients, business associates and friends. Recipients should not act on the information presented without seeking prior professional advice. Additional guidance may be obtained by contacting us at 802-878-1963 (Williston) or 802.775.7132 (Rutland).
