Vermont Dropshipping Sales Tax Guide — 2026

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%.

• If you have a Vermont sales tax permit, you can usually issue your dropshipper a VT resale certificate to avoid being charged sales tax on the wholesale invoice.
• Some states (notably California, Florida, Massachusetts, Tennessee, and a few others) require the buyer to hold an IN-STATE registration before issuing a resale certificate — a home-state certificate isn't enough.
• Streamlined Sales Tax (SST) states accept the uniform Multistate Certificate; others have their own forms.

• 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 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.

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.

• Vermont · E-commerce
  General e-commerce sales tax rules
• Vermont · Thresholds
  Economic and transaction nexus thresholds
• Vermont · Marketplace Facilitator
  Marketplace facilitator law for the state