Who collects Vermont sales tax on dropshipped orders?

You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.

Will my dropshipper charge me Vermont sales tax on the wholesale?

Only if your dropshipper has Vermont nexus AND you can't provide a valid VT resale certificate. Obtain resale certificates for every state where your dropshipper operates.

Does dropshipping trigger economic nexus in Vermont?

Yes, your retail revenue into Vermont still counts toward the $100,000 in gross sales OR 200 transactions threshold, independent of how fulfillment happens.

Can I use an out-of-state resale certificate for a dropshipper in Vermont?

Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your VT dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Vermont's current rule with its Department of Revenue. Verified 2026-06-27.

Vermont Dropshipping Sales Tax Guide — 2026

Updated 2026-07-20

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-20.

Guide content last reviewed: 2026-07-20

If your Dropshipping business sells $100,000 or 200 transactions into Vermont in a calendar year, you have economic nexus and must register, collect, and remit Vermont sales tax.

Dropshipping sales tax in Vermont

As of June 2026, a Vermont drop shipment is a three-party sale: you collect Vermont sales tax from your customer on the retail price once your sales into the state pass $100,000 or 200 transactions, while your supplier charges you tax on the wholesale invoice only when it has Vermont nexus and you can’t give it a valid resale certificate.

Dropshipping into Vermont raises three distinct tax questions. First, you (the retailer) have to collect and remit Vermont sales tax on your retail sales if you exceed $100,000 or 200 transactions. Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Vermont nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Vermont applies 6.00% as the base state rate; local add-ons average 0.36%.

Resale certificates: which document each state accepts

If you hold a Vermont sales tax permit, you can usually issue your dropshipper a VT resale certificate so it does not charge you sales tax on the wholesale invoice.
No Vermont permit yet? Two multistate forms cover most states: the Streamlined Sales Tax Certificate of Exemption (SST form F0003), honored by all 24 SST member states, and the MTC Uniform Sales & Use Tax Resale Certificate, accepted by roughly 36 states.
A handful of states reject an out-of-state resale certificate from the true retailer in a drop shipment and effectively require in-state registration or extra paperwork — notably California, Florida, Hawaii, Illinois, Maryland, and Massachusetts. Florida also requires the supplier to obtain a transaction authorization number before honoring an MTC certificate. In those states a home-state certificate alone may not protect your supplier, so confirm the rule with that state’s Department of Revenue.

Sources: MTC Uniform Sales & Use Tax Resale Certificate (multijurisdiction) and the Streamlined Sales Tax Governing Board. date_retrieved: 2026-06-27. State acceptance changes — verify with the relevant state DOR before relying on a multistate certificate.

Common dropshipping mistakes in Vermont

Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
Forgetting that your retail revenue into Vermont still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

Vermont nexus note

Vermont sales tax nexus and economic nexus threshold: remote sellers must register, collect, and remit Vermont sales tax when Vermont-destination sales reach $100,000 or 200 individual sales transactions during the preceding twelve-month period. The remote-seller rule took effect July 1, 2018 after South Dakota v. Wayfair. Vermont counts taxable and nontaxable sales toward the threshold unless all the seller's Vermont sales are exempt; sellers review the threshold at each calendar-quarter close and generally begin collecting by the first day of the following month after the 30-day analysis window. Marketplace sellers combine direct Vermont sales with marketplace sales when testing the threshold, but do not collect on marketplace transactions where the marketplace is already collecting Vermont sales tax on their behalf. Vermont imposes a 6% state sales tax on retail sales, uses destination-based sourcing, and some municipalities add a 1% local option tax on taxable destination sales. Internet purchases, digital downloads, and prewritten software are listed by the Department as taxable categories unless an exemption applies.

What to do next

Read the full Vermont overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Dropshipping sales tax in other states

Compare Vermont's dropshipping rules with nearby and similar states' dropshipping sales tax guides:

Frequently asked questions

Who collects Vermont sales tax on dropshipped orders?: You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.
Will my dropshipper charge me Vermont sales tax on the wholesale?: Only if your dropshipper has Vermont nexus AND you can't provide a valid VT resale certificate. Obtain resale certificates for every state where your dropshipper operates.
Does dropshipping trigger economic nexus in Vermont?: Yes, your retail revenue into Vermont still counts toward the $100,000 in gross sales OR 200 transactions threshold, independent of how fulfillment happens.
Can I use an out-of-state resale certificate for a dropshipper in Vermont?: Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your VT dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Vermont's current rule with its Department of Revenue. Verified 2026-06-27.

Sources

date_retrieved: 2026-06-24