Vermont Tax Department Publishes Tax Guide for Restaurants, Food service Businesses

The Vermont Department of Taxes published a tax guide for restaurants and food service businesses outlining their responsibilities for meals tax, alcohol tax, local option tax, sales and use tax, and income tax. The guide details what qualifies as a taxable meal, rates for different taxes, how to properly collect and remit taxes, rules around tips and service charges, guidelines for tax-exempt nonprofits, and filing requirements. The guide also provides clarification on complex scenarios, such as bundled transactions, catering services, meal delivery platforms, and the manufacture of alcoholic beverages. [Vt. Dep’t of Taxes, Vermont Publication GB-1337, 06/01/25]

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