Vermont Resale Certificate Guide 2026: How to Get Yours

Vermont is a small state with a strong enforcement reputation when it comes to sales tax compliance. The state sales tax rate is 6%, with some municipalities adding a 1% local option tax that brings the combined rate to 7%. Despite its size, Vermont runs a tight ship on tax compliance. If you buy goods for resale in Vermont, you need either Form S-3, the Vermont Resale Certificate, or the SST Certificate of Exemption. This guide covers the full process for 2026.

Vermont Sales Tax Basics

State Rate

The Vermont state sales tax rate is 6%. Select municipalities have adopted a 1% local option tax, which brings the total rate to 7% in those areas. Not all towns levy the local option tax, so the rate can vary depending on where a sale takes place.

You can verify the rate for any Vermont address using our sales tax lookup tool.

Use Tax

Vermont imposes a 6% use tax (plus any applicable local option tax) on goods purchased from out-of-state vendors when no Vermont sales tax was collected. Items purchased for resale are exempt from use tax with proper documentation.

What Is Taxable in Vermont?

Vermont taxes most tangible personal property and selected services:

• Most physical goods are taxable
• Groceries (unprepared food) are exempt
• Prescription drugs are exempt
• Clothing is exempt up to $110 per item (amounts over $110 are taxable)
• Prepared food (meals) is taxable at the 9% meals and rooms rate
• Lodging is taxable at the 9% meals and rooms tax rate
• Most services are not taxable, with specific exceptions
• Digital products including downloaded software are taxable in Vermont

What Form Do You Need?

Vermont uses Form S-3, the Vermont Resale Certificate. The state also accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption (SST Certificate).

About Form S-3

Form S-3 is Vermont's dedicated resale certificate. It is used to document that a purchase is being made for resale and is therefore exempt from Vermont sales and use tax.

Key fields include:

• Purchaser's name, address, and phone number
• Vermont tax account number
• Description of the business
• Types of products purchased for resale
• Statement that all items will be resold
• Purchaser's signature and date

SST Certificate Alternative

As an SST member state, Vermont also accepts the SST Certificate of Exemption. Businesses operating in multiple SST states may find the SST certificate more convenient, since one form works across all member states.

Where to Get the Form

Form S-3 is available as a free PDF from the Vermont Department of Taxes website at tax.vermont.gov. The SST certificate is available from the Streamlined Sales Tax Governing Board website.

Who Needs a Vermont Resale Certificate?

Any business purchasing tangible personal property for resale needs a Vermont resale certificate. This includes:

Retailers buying inventory for sale in brick-and-mortar stores, online platforms, craft fairs, or seasonal shops. Vermont's tourism economy, particularly around skiing and fall foliage, supports many retail businesses.

Wholesalers and distributors purchasing goods for redistribution to retailers and other businesses throughout Vermont and the New England region.

Online sellers registered in Vermont who purchase inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Manufacturers purchasing raw materials and components that become part of a finished product manufactured for sale. Vermont has a notable specialty food and craft manufacturing sector.

Restaurants and food businesses purchasing food ingredients for preparation and sale as meals.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, tools, or equipment for internal operations
• Contractors buying materials for installation into real property

How to Apply for a Vermont Resale Certificate

Step 1: Register for a Vermont Sales Tax Account

You need a Vermont tax account number before you can issue a valid Form S-3. Registration is handled through the Vermont Department of Taxes.

What you need to register:

• Federal EIN or SSN
• Business legal name and DBA
• Business physical and mailing addresses
• Type of business entity
• Description of business activities
• Expected start date
• Estimated monthly taxable sales
• Information about owners, partners, or officers

Registration is free. Apply online through the Vermont Department of Taxes website at tax.vermont.gov or through the SST registration system.

Processing time: Online applications are typically processed within 7 to 10 business days.

Step 2: Complete Form S-3 or SST Certificate

Download your preferred form and fill in your business details. On Form S-3, include your Vermont tax account number and describe the products you will purchase for resale. On the SST certificate, select Vermont as the applicable state and check "Resale" as the reason for exemption.

Step 3: Provide the Certificate to Your Suppliers

Give the completed certificate to each vendor you want to buy from tax-free. The vendor retains the certificate on file and does not charge sales tax on qualifying purchases.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Vermont's SST membership and New England location make multi-state commerce a common consideration.

SST Membership

Vermont is a full member of the Streamlined Sales Tax (SST) agreement. This means the SST Certificate of Exemption is valid in Vermont, and Vermont-registered businesses can use the same certificate format when purchasing for resale in other SST member states.

Economic Nexus

Vermont's economic nexus threshold is $100,000 in sales or 200 transactions with Vermont customers in the prior 12 months. Out-of-state sellers exceeding either threshold must register, collect, and remit Vermont sales tax.

Marketplace Facilitator Rules

Vermont requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers. If you sell through Amazon, eBay, or similar platforms, the marketplace handles Vermont sales tax on those transactions.

New England Commerce

Vermont borders New Hampshire (no sales tax), Massachusetts, New York, and Quebec (Canada). Businesses near the New Hampshire border frequently deal with customers who expect no sales tax. Understanding cross-border dynamics is important for pricing and compliance.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Vermont Resale Certificates

Mistake 1: Using the Certificate for Non-Resale Purchases

The most common violation is using a resale certificate to buy items for personal or business use. Vermont's small size does not mean less enforcement. The Department of Taxes is known for thorough audits.

Mistake 2: Ignoring the Local Option Tax

If you sell in a municipality that has adopted the 1% local option tax, you must collect and remit the additional 1%. Failing to account for local option taxes results in underpayment and penalties.

Mistake 3: Mishandling the Clothing Exemption

Clothing items priced at $110 or less per item are exempt from Vermont sales tax. Items over $110 are taxable on the full price. If you sell clothing, apply this threshold correctly. If you buy clothing for resale, you use your resale certificate regardless of the price, since the exemption at retail is a separate matter.

Mistake 4: Not Filing During Off-Season Periods

Many Vermont businesses are seasonal, especially those tied to skiing or tourism. Even if you have no sales in a given period, you must still file a return. Failure to file can result in penalties and loss of your registration.

Vermont-Specific Rules You Should Know

Meals and Rooms Tax

Vermont imposes a 9% meals and rooms tax on prepared food and short-term accommodations. This is separate from the general 6% sales tax. Restaurants, hotels, and short-term rental businesses collect this tax in addition to (or instead of) the general sales tax, depending on the type of transaction.

If you operate a restaurant and purchase food ingredients for resale as prepared meals, you use your resale certificate for the ingredient purchases and collect the 9% meals tax from your customers.

Clothing Exemption

Vermont exempts clothing priced at $110 or less per item from sales tax. Items over $110 are fully taxable. This threshold is per item, not per transaction. Accessories, athletic clothing, and protective equipment follow specific rules regarding whether they qualify as "clothing."

Local Option Tax

The 1% local option tax is adopted at the municipal level. Not all municipalities levy it. Businesses operating in multiple locations within Vermont need to track which municipalities have adopted the local option and collect the additional 1% where applicable.

Digital Products

Vermont taxes prewritten computer software and certain digital products. If you sell digital goods, understand which products are taxable. If you purchase digital products for resale, the resale exemption applies.

Strict Enforcement

Vermont has a reputation for strict sales tax enforcement relative to its size. The Department of Taxes conducts regular audits and expects businesses to maintain complete records. Having properly documented resale certificates on file is critical.

How Much Can You Save?

Vermont's 6% rate (7% in some municipalities) provides meaningful savings on inventory purchases.

Use our savings calculator to calculate your exact savings.

Vermont Resale Certificate FAQs

Q: Does the Vermont resale certificate expire? A: Vermont does not print an expiration date on Form S-3. The certificate is valid as long as the buyer's tax account is active. Vendors may request updated certificates periodically.

Q: Can I use the SST certificate instead of Form S-3? A: Yes. Vermont is an SST member and accepts the SST Certificate of Exemption. Either form is valid for documenting resale purchases.

Q: Is there a fee for a Vermont sales tax registration? A: No. Vermont does not charge a fee for sales tax registration.

Q: Is clothing taxable in Vermont? A: Clothing priced at $110 or less per item is exempt from Vermont sales tax. Clothing over $110 per item is taxable on the full price.

Q: Does the local option tax apply everywhere in Vermont? A: No. The 1% local option tax is adopted at the municipal level. Not all municipalities have enacted it. Check with the Vermont Department of Taxes or use our sales tax lookup tool to find the rate for a specific location.

Get Started with Your Vermont Resale Certificate

Vermont's SST membership and straightforward rate structure make the resale certificate process manageable. Get registered, complete your Form S-3 or SST certificate, and start saving on inventory purchases.

• Expert registration guidance
• Help completing Form S-3 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Vermont's requirements, visit our Vermont state page.

Vermont may be small, but it takes sales tax compliance seriously. Register properly, document your exemptions, and file on time. The savings on inventory purchases add up quickly, especially if you operate in a municipality with the local option tax.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Multi-State Resale Certificates - Vermont's SST membership simplifies multi-state purchases.
• Resale Certificate Mistakes That Trigger Audits - Vermont's strict enforcement makes this guide essential reading.