Exemption on Cloud Software Repealed in Vermont

Effective July 1, 2024, the state’s sales and use tax exemption for remotely accessed prewritten computer software is repealed. As such, the previously exempt “cloud software” will be subject to Vermont’s 6% sales and use tax. As a result of the legislation, the sale of prewritten computer software will now be treated consistently, regardless of whether it is accessed remotely or not.

Please note that this is only an overview. For specific guidance, connect with our sales and use tax team here.

H.B. 887 (2024)