Vermont Use Tax for Individuals

The difference in use tax for individuals compared to businesses is how it is calculated and reported. An individual may keep track of purchases in which sales tax was warranted but not collected. The tax would be determined by multiplying it by 6%. As an alternative, if you do not have accurate records you may use the Use Tax Reporting Table to calculate use tax based on your adjusted gross income (see link to white paper below).

IMPORTANT: For each purchase with a total invoice amount of $1,000 or more, the use tax must be calculated exactly. If you are also using the use tax reporting table for amounts less than $1,000, add the amount listed in the table to the calculated amount.

You may report and pay any use tax owed when you file your Vermont Income Tax Return (Form IN-111) by completing line 27 on the return. If you do not enter an amount on line 27, you must “certify” that you have no use tax liability by checking the box.

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].