For the latest news and updates on Vermont state and local tax
December 12, 2021
Vermont Releases New Apportionment and Allocation Regulations
Vermont has updated its sales sourcing rules for sales, other than sale of tangible personal property. Effective for tax years beginning on or after January 1, 2020, sales other than the sale of tangible personal property should be sourced to the “market state” rather than where the costs were incurred. Effective December 1, 2021, Vermont has amended its regulations to reflect this change and has provided additional guidance for specific industries (e.g., architectural and engineering firms, law firms, brokerage services).
June 9, 2021
Vermont Updates Guidance for Remote Workers
The Vermont Department of Taxes has updated its guidance for remote workers. Anyone who is a non-resident but temporarily living and working in Vermont, has an obligation to pay Vermont income taxes on the income earned while living and performing work in Vermont. This is true even if the person was in Vermont due to the coronavirus (COVID-19) pandemic, and regardless of whether the person’s employer is located inside or outside of Vermont. Individuals are subject to Vermont income tax under two circumstances: they are residents of Vermont, either by domicile or presence in the state for more than 183 days; or they earn Vermont income. Those persons who have been residing in Vermont for more than two weeks, but generally live and work in another state, are required to pay income tax on the money that is earned while in Vermont. This applies even if the person is paid by an out-of-state employer. However, for persons who live out of state, but previously commuted to Vermont and now live and work outside of Vermont, the income earned while at home is not Vermont income (even though the employer is still located in Vermont), and is not subject to Vermont income tax. For more information, please see Filing Guidance for Remote Workers, Vt. Dept. of Taxes, 05/26/2021.
May 21, 2021
Vermont Makes Changes to Captive Insurance Filing Requirements
Effective May 12, 12/2021, Virginia has amended the requirements for which types of captive insurance companies must file an annual report by March 15 of each year by adding agency captive insurance companies. Previously, only pure captive insurance companies, association captive insurance companies, sponsored captive insurance companies, and industrial insured captive insurance were required to file. It also allows agency captive insurance companies to make a written application for filing the required report on a fiscal year-end. For specific information, please visit the Vermont Department of Financial Regulation.
March 23, 2021
Vermont Update on Extension of Filing Deadline
The Vermont Department of Taxes has announced that it will follow the deadline change made by the IRS for individual income tax returns, extending the due date for state individual income tax returns to May 17, 2021 without any penalties or interest. Taxpayers who are expecting a refund are encouraged to file as soon as they have all of their tax information and are able to do so, in order to get their refund as quickly as possible. The extension also applies to homestead declarations and property tax credit claims, which can be filed with personal income tax returns by May 17, without penalties or interest. ( COVID-19 Update: Tax Year 2020 Personal Income Tax Filing Due Date, Vt. Dept. of Taxes, 03/18/2021 .)
March 21, 2020
No Changes to VT Tax Filing Due Date
VT not changing the state’s tax filing due date as of now. The Vermont Department of taxes is not changing the tax filing due date for Personal and Corporate Income taxes as well as certain Business Taxes. However, the Vermont Department of Taxes is in discussions with the Governor’s Office and Vermont Legislature about various upcoming due dates for these taxes. The Department is looking to provide guidance soon. Learn more here.
July 2019
Updated Corporate Tax Change
IRC Conformity Date – Applicable for tax years beginning January 1, 2018 and on, Vermont has adopted the federal income tax laws. This is effective January 1, 2019.
Sourcing Rules – Vermont has updated its sourcing rule to market based sourcing for intangibles.
Marketplace Facilitator – Sales Tax Requirements
Beginning June 1, 2019, marketplace facilitators are now required to collect and remit sales tax if sales total $100,000 or more or have more than 200 sales in the state.
