Vermont Tax Tips for Event Organizers and Vendors

Disclaimer: The informaon provided here is intended to be an overview only. Vermont tax statutes,

regulaons, Vermont Department of Taxes rulings, or court decisions supersede informaon presented here.

Revised June 2023 | Publicaon FS-1292

What Organizers Need to Know

Reporng

Part of your role as an event organizer is to provide

the Department with a list of vendors at least one

business day prior to an event where 25 or more

vendors are expected. If the vendor list changes,

send an updated list within seven days aer the

event. We encourage you to submit the informaon

within the me frames outlined in statute 32 V.S.A.

§ 9707 (hps://legislature.vermont.gov/statutes/

secon/32/233/09707).

The Department has developed an Excel template

(hps://tax.vermont.gov/business/industry) which

can be found on our industry guidance page that

may be used for reporng vendor informaon.

Vendor lists may be emailed to tax.oceaudit@

vermont.gov or faxed to (802) 828-2514.

Charges for Admission

Fees to access an event are subject to sales tax.

Booth and Table Fees

Fees charged to vendors for space at an event

are not taxable unless the fee is to rent tangible

personal property (TPP), such as chairs or tables.

Rentals of TPP are subject to sales tax.

What Vendors Need to Know

Before making any taxable sales, it’s important for a

vendor to have a business tax account and license in

Vermont. Both are free. If you don’t have them, see

business/register). Register at least one day before

the event. See 32 V.S.A. § 9707 (hps://legislature.

vermont.gov/statutes/secon/32/233/09707) about

the requirements.

You will need to have a business tax account even if

you plan to be a vendor only one me. Addionally,

if you plan to sell alcohol, don’t forget to contact

the Division of Liquor Control (hps://liquorcontrol.

vermont.gov/) if you have quesons about licensing.

Local Opon Tax

See the list of Vermont municipalies (hps://tax.

vermont.gov/business/local-opon-tax) that require

a 1% addional tax on taxable sales made in those

towns. Be sure to add 1% tax to the appropriate tax

for items sold.

Bundled Transacons

If items with dierent tax rates are sold for one

non-itemized price, you must charge the highest

applicable tax rate for the enre transacon. For

example, if you sell alcoholic beverages (10% tax)

with a prepared meal (9% tax) and you don’t itemize

the charges on the bill, you must charge 10% tax

for the enre order. Note: This example is for a

municipality without a local opon tax.

Tips and Service Charges

Tips voluntarily le by customers are not subject to

sales tax or meals tax, although they may be subject

to withholding for income tax. Keep in mind that

service charges that are required are not voluntary

ps. See Geng Started with Meals and Rooms

Tax (hps://tax.vermont.gov/business/meals-and-

rooms-tax/geng-started) which includes guidance

on service charges.

This guidance is published by the Vermont Department of Taxes to help event organizers and businesses

navigate the rules that apply to events, such as farmers markets, ea markets, cra fairs, shows, and

exhibions. We hope this guide will help you in following Vermont’s tax laws. If you need further assistance

with any of the topics covered below, please feel free to contact us at tax.business@vermont.gov.

Dierent rules apply to nonprots.

See tax.vermont.gov/business/

nonprots for guidance.

Income Tax Withholding

Event sta may be subject to withholding taxes. See

Withholding (hps://tax.vermont.gov/business/

withholding) for more informaon. You may need to

issue federal Form 1099-MISC (hps://www.irs.gov/

forms-pubs/about-form-1099-misc) to entertainers

hired to perform, as required by the IRS.

Vermont Taxes that Apply at

Events With Vendors

The taxes that come up most oen are the Sales and

Use Tax (usually called “sales tax”) and the Meals

and Rooms Tax (usually called “meals tax”) when it

applies to sales of prepared food. Local Opon Tax

may also apply if the event takes place in a local

opon tax municipality. See our local opon tax

webpage for more informaon (hps://tax.vermont.

gov/business/local-opon-tax).

Vermont Sales and Use Tax

Vermont has a 6% sales tax on retail sales of tangible

personal property. Sales tax applies if the buyer

receives a taxable item in Vermont.

Most grocery-type foods are exempt from sales

tax, except that so drinks and alcoholic beverages

are taxable. A drink is taxable if it has natural or

arcial sweeteners (but milk, milk substutes, or

beverages with 50% or more juice are not taxed).

See our industry guidance (hps://tax.vermont.gov/

business/industry/so-drinks) for more informaon.

Vermont has dozens of other sales tax exempons

(although most will not apply to the types of

transacons discussed here). If you’re unsure about

the taxability of an item (hps://tax.vermont.gov/

exempt-items) visit our website. If you sll need

help, please contact the Business Tax secon. See

Geng Started with Sales and Use Tax (hps://tax.

vermont.gov/business/sales-and-use-tax/geng-

started) for addional informaon.

Vermont Meals and Rooms Tax

Vermont has a 9% Meals and Rooms Tax on lodging

and meals. Non-frozen sandwiches, heated food

and beverages, salad bars, party plaers, and

prepared foods are always subject to the meals tax.

Most other food and drink items are subject to the

meals tax if sold by a “restaurant,” which includes

concession stands, street carts, vendors at farmers

markets and street fairs, street carts, and food

trucks. Some items are not subject to the meals

tax, even if sold by a restaurant. See our exempt

Event Tokens

The tax treatment of event tokens depends on

how they are used at an event. Currency tokens

(purchased and used dollar-for-dollar at the event)

are not subject to tax at the me of purchase. When

a purchase is made from a vendor with currency

tokens, the applicable tax should be collected by the

vendor if the purchase is subject to tax. The total

price (items and tax) may be paid in tokens. This tax

should be reported and remied by the vendor as

with any other taxable transacon.

However, when tokens are used in exchange for

specic items or amusements, like drink ckets or

amusement ride tokens, the tokens themselves are

subject to the applicable tax at the me of purchase.

In these cases, tax should not be added when the

customer redeems a drink or ride from a vendor

using a token. Generally, these tokens are sold by

the event organizer and the applicable tax should

be collected, reported, and remied by the event

organizer.

We know proper taxaon of tokens can be complex.

Please contact us at (802) 828-2551 if you plan to

use tokens at your event and need assistance with

determining the appropriate taxability.

Contact

If you have quesons, please contact us at tax.

[email protected] or (802) 828-2551. We’re

here to help.

meals guidance for details (hps://tax.vermont.gov/

business/meals-and-rooms-tax/geng-started).

Vermont Alcohol Tax

Alcohol is subject to the 10% alcohol tax if sold for

immediate consumpon, but is subject to the 6%

sales tax if the customer is bringing it home. See our

fact sheet for Brewers, Winemakers, and Disllers

(hps://tax.vermont.gov/business/industry).

If meals tax is included in the price of an

item, you must state “tax included” on

the menu, price list, bill, or receipt.

Some items bought with a 3SquaresVT

EBT card are exempt from tax. See

hps://tax.vermont.gov/business/

industry/3squaresvt-snap to learn more.