United States

Vermont: Department Clarifies Effective Date for Click-Through Nexus Law

Aug 17, 2015
From KPMG TaxWatch

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On August 10, 2015, the Vermont Department of Taxes released a statement clarifying the timeline under which it will implement the state’s click-through nexus law if it is determined to become effective. The Vermont legislature passed a click-through nexus statute in 2011. The law presumes sales and use tax nexus over a remote seller if the seller contracts with Vermont residents to refer potential customers to the seller via a link on a website or otherwise, assuming such referrals lead to $10,000 in sales during the preceding year. However, the law’s effective date was delayed until 15 or more states had adopted similar provisions, as determined by the Vermont Attorney General.

The Department’s statement clarifies that the Attorney General currently considers 13 states to have click-through laws. Three additional states have enacted click-through legislation that becomes effective this fall (Washington on September 1; Michigan and Nevada on October 1). The Attorney General will review these laws in October to determine if the Vermont law is to go into effect. The Department explained that it will notify taxpayers if the Attorney General determines that the Vermont law is to become effective. Remote sellers affected by the law will be required to register and begin collecting tax on the first day of the month that is at least 30 days after the Attorney General’s determination. For more information regarding Vermont’s click-through nexus law, please contact Joseph Senier at 617-988-1025.


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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.