Use Tax applies to taxable purchases on which sales tax has not been charged. This includes purchases from a mail-order house or catalog, over the Internet, from an out-of-state retailer, or from any retailer who did not charge sales tax. No Use Tax is due on purchases of food, clothing, prescriptions, or newspapers. Tax applies to most other products including, but not limited to, magazine subscriptions, computers, computer software, furniture, jewelry, audio, video and electronic equipment, computer downloads such as movies, music, books, or ringtones.
In May you paid $200 for software delivered through a download to your computer. The company charged no sales tax. You need to report $12.00 Use Tax ($200 x 6%).
In July, you paid $100 for books purchased from a mailorder company that shipped the books to your VT home. The company charged $7.50 shipping. The company charged no sales tax. You owe $6.45 Use Tax [($100 + $7.50) x 6%].
You may use the Use Tax Reporting Table if you do not have receipts to calculate the actual Use Tax. The option to use the reporting table applies only to purchases less than $1,000. NOTE: For each purchase with a total invoice amount of $1,000 or more, you must calculate the use tax and, if also using the reporting table, add that amount to the tax from the table.
Because proof of tax payment is required to register an ATV, dirt bike, boat or snowmobile, use Form SU-452. Form SU-452 is available on the Department web site or by calling 802-828-2515. For more information or assistance, call the Department at 802-828-2551.