Vermont: The Green Mountain State

Vermont is located in the northern United States and is part of the New England region. The “Green Mountain State” has an area of ​​almost 24,000 km² and calls New York to the west, Massachusetts to the south and New Hampshire to the east its American neighbors. Vermont borders Canada to the north. Its 625,000 residents make the state the second least populated. According to ehuacom, the capital, Montpelier, had fewer than 8,000 inhabitants at the last census (2010).

Local, national, and international businesses thrive in Vermont because of community support, government support, and collaboration among colleagues. Start-up, emerging and innovative companies thrive here because Vermont offers the human, social and financial capital they need. In 2019, the Green Mountain State ranked second in the national Opportunity Index. It is also very remarkable that almost 80 percent of all startups in Vermont are still active a year after they were founded (Kauffman Foundation, 2020).

Vermont is home to globally competitive businesses and many notable brands. Originality is encouraged here, quality is respected and collegial cooperation helps everyone to bring out the best. If you’re looking to start or expand your business, you’ll find everything you need in Vermont.

Vermont Location Map

SOCIALLY RESPONSIBLE COMPANIES

The local companies take social responsibility seriously. In 2010, Vermont became the second state in the country to enact benefit corporation legislation. It allows new companies to form as a benefit corporation and existing companies to organize themselves as such. The legal framework of a benefit corporation gives companies and investors the flexibility to consider the long-term mission and public benefit to all stakeholders, including shareholders, in addition to profit, including in exit transactions such as IPOs and acquisitions.

Today there are 38 certified B-Corps, ranging from well-known food companies like Cabot Creamery Co-op and Ben & Jerry’s to public utilities like Green Mountain Power, financial institutions like Mascoma Bank, retail brands like Seventh Generation, and advanced manufacturing companies like Chroma Technology Corp. Vermont is among the top ten states in the country with the highest number of B corps per capita.

The B Corp certification is an additional tool for companies to conduct their activities and programs according to the highest social and environmental standards. You can find out more about the benefit corporation here.

WORKERS WITH A GOOD REPUTATION

Vermont’s workforce is characterized by a strong work ethic and manual skills. The state consistently occupies a top position in the quality of the education of its talents. This applies to university and college curricula as well as vocational training programs.

Vermont’s continued commitment to workforce innovation produces a workforce skilled in emerging technologies. Organizations like BTV Ignite and Burlington Code Academy provide access to programming and software training for technical professionals. The Community College of Vermont offers certificate training in manufacturing, healthcare, and finance, while the Vermont Technical College offers continuing education in craft, manufacturing, human resources, and teaching.

The Vermont Department of Labor offers employers a variety of human resource development resources to hire and train existing and new employees. For example, companies can register for weekly regional #HiringVT2Day Virtual Job Fairs. The Green Mountain State recognizes the importance of a skilled workforce and is committed to providing businesses with one.

VERMONT INCOME TAX

Vermont charges an income tax of 3.35 – 8.75% depending on income. In addition, federal income taxes are payable.

VERMONT CORPORATE INCOME TAX

Vermont charges a corporate income tax of 8.5%. In addition, federal corporation tax is payable.

SALES TAX IN VERMONT

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Vermont

The sales tax in Vermont is 6% at the state level. Municipalities or districts charge an average of 0.22% sales tax. Combined, an average of 6.22% is due.

Vermont Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 01, 2018

Transactions included:

Sale of tangible personal property, electronically transmitted products or services in the US State, provided the retailer regularly or systematically solicits sales from customers in the State

Treatment of tax-exempt transactions:

Exempted sales and exempt services are included in the threshold. However, businesses that only sell tax-exempt items into Vermont do not need to register for a sales tax account.

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold is for the previous 12 month period and should be reassessed on a quarterly basis

Extra information:

  • Registration Requirements: A remote business must register to collect and remit Vermont sales tax within 30 days of crossing the Economic Nexus Threshold. Sellers must determine at the end of each quarter whether the Vermont threshold has been met. For more information, see the Wayfair FAQ.
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Vermont Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

June 1, 2019

Economic Nexus Threshold:

Greater than $100,000 in gross sales or 200 or more transactions in Vermont during a prior 12 month period. Remote sellers should include sales through a marketplace in the calculation of the threshold. Marketplace facilitators only include sales facilitated through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Vermont Department of Taxes and collect Vermont sales tax on sales not taxed by a marketplace intermediary once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You must register if you cross the Economic Nexus Threshold. Contact the Vermont Department of Taxes for more information.
  • In-State Multichannel Sellers: You must register with the Vermont Department of Taxes and collect taxes on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact the Vermont Department of Taxes for more information.