News for Businesses & Nonprofits

Vermont Department of Taxes

News for Businesses and Nonprofits

November 18, 2020

New Look, Same Service

A new and improved myVTax was rolled out Nov. 9. From the logged-in business home page, you can see a summary of your accounts, choose a form or respond to correspondence under the "I Want To" tab, and in the Action Center, you can see what items need attention.

With the improvements to myVTax, many forms have become easier and more streamlined. To help you navigate the form you need, the Department is in the process of updating its myVTax how-to guides.

Alcohol for Takeout

A directive from Gov. Phil Scott allows restaurants (see definition ) to sell alcoholic beverages for takeout or delivery, so long as they are purchased with a meal. The directive also allows delivery of alcohol products by licensed retail stores.

Alcohol delivered or taken out with a meal from a restaurant is presumed by the Department of Taxes to be for immediate consumption; therefore it is subject to the 10% Meals Tax.

Licensed retail stores that do not meet the definition of restaurants must collect 6% sales tax for alcoholic beverage sales, whether sold through delivery or onsite.

No Change to Home Office Deduction

Due to the pandemic, more people than ever are working from home this year. Naturally, the question arises of whether a home office that is otherwise part of the household qualifies for a tax deduction. The answer is no.

The rules for deducting home office space have not changed. Vermont follows federal law on this matter. As before COVID-19, the space must be exclusively used as an office--not shared with the household--to qualify for a deduction.

See the IRS rule for guidance.

Employment Opportunity

The Department of Taxes is seeks a Director of Taxpayer Services. The director administers operations for individual, business, corporate and fiduciary taxes, as well as two property tax types.

Apply Now

Compliance Tips for Employers

Vermont Withholding

Many Vermonters under-withhold their Vermont income tax. This is due to differences between federal and Vermont withholding allowances and tax credits. For proper withholding, the Department recommends that all Vermont businesses have employees complete both Vermont Form W-4VT as well as federal Form W-4.

Do You Have the Right Social Security Number?

Employers should make it a practice to review employees' Social Security Numbers every year. Mismatched SSNs follow unreported income as a major cause of delayed return processing. This year, approximately 600 Vermont businesses were notified of mismatches between the SSN an employee used on a tax return and what the business used to report withholding.

Why Follow Us on Social Media?

In the time between publications of this e-newsletter, you can stay ahead with our daily updates on Facebook and Twitter. We highlight changes to our website, new guides and fact sheets, useful tips to help individuals and businesses with state and federal taxes, financial safety alerts, and more. To get on board, visit our Facebook page and "Like" us or hit the "Follow" button on our Twitter feed

Connect with Us

Most Department employees are working remotely, but that doesn't mean we aren't available to answer your questions. Should you have a need to contact us about a return, secure email is the best method. See our contact options here. We are here to help.

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