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How Vermont Handles Tax on Shipping

Learn how Vermont handles sales tax on shipping charges

Updated this week

In Vermont, shipping charges are taxable when connected to taxable items.


General Rule

  • Taxable: Delivery is taxable if taxable goods are sold.

  • Exempt: Shipping is exempt if all items shipped are exempt.


Handling Charges

Handling and combined “shipping & handling” fees are always taxable.


Best Practices for Compliance

  • List delivery separately on invoices.

  • Check mixed orders — taxable items make shipping taxable.


Example

  1. $500 taxable goods with $30 delivery → $30 is taxable.

  2. $500 exempt food with $30 delivery → $30 is exempt.


Stay Compliant with Kintsugi

Vermont’s rules are tied directly to item taxability. Kintsugi Intelligence ensures shipping is calculated correctly every time.


⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.

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