Businesses and self-employed individuals purchasing property subject to sales and use tax, should apply for a business tax account and sales and use tax license.
Use tax is reported on the sales and use tax return, Form SU-451. This form is filed online using VTBizFile, after your account with the state has been set up.
IMPORTANT: When reporting and paying these taxes, be sure to report and remit the tax for every required filing date, even when no tax is owed.
There are three ways to calculate use tax:
- For items purchased at retail, the tax is on the purchase price.
- For items you manufacture that you use in the operation of your business or for personal use, the tax is on your “best customer” price for which you normally sell the items.
- For items that have been fabricated, printed, or imprinted, the tax is on the amount paid for the property plus the fabrication labor or service charge.
Remember, business owners are expected to be familiar with state tax laws and regulations applicable to their businesses.
The following white paper outlines general guidelines for the application of use tax in the state of Vermont: http://www.dh-cpa.com/client_media/files/pdf/2014_UseTax.pdf
Need help with your use tax self-audit? Davis and Hodgdon Associates CPAs has been assiting nonprofits, individuals and businesses with tax and accounting services in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].