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Can I collect sales tax from customers in different states without violating tax laws in Vermont? What are the requirements?

Can I collect sales tax from customers in different states without violating tax laws in Vermont? What are the requirements?

According to Vermont Sales and Use Tax Regulations, all tangible personal property is taxable as specified in Vermont statute 32 V.S.A. § 9701 and Vermont Sales and Use Tax Regulations [3]. Therefore, if you are selling tangible personal property to customers in different states, you may be required to collect sales tax from those customers. However, the specific requirements for collecting sales tax from out-of-state customers vary by state.

To determine the requirements for collecting sales tax from customers in different states, you should consult the tax laws of each state where you have customers. Each state has its own rules for sales tax collection, and some states require out-of-state sellers to collect sales tax if they meet certain thresholds [1].

For example, if you sell to customers in New York, you may be required to register for a New York State sales tax permit and collect sales tax if you have more than $500,000 in sales in New York or more than 100 sales transactions in New York [2].

Therefore, it is important to research the sales tax laws of each state where you have customers to ensure that you are in compliance with all applicable laws.

In summary, you may be required to collect sales tax from customers in different states, and the specific requirements for doing so vary by state. It is important to research the sales tax laws of each state where you have customers to ensure compliance with all applicable laws.

Source(s):
Jurisdiction

Vermont