Vermont's 1099-K figure just moved, and most advice online hasn't caught up.

The Bottom Line for Vermont eBay Sellers

An LLC doesn't change Vermont's marketplace, registration, or reporting rules for eBay sellers. It changes who is legally exposed once those rules apply. What's specific to Vermont is that one of its own numbers moved recently, and a seller relying on older information is working from a stale figure without realizing it.

Vermont law requires third-party settlement organizations to report using a lower, general information-return threshold rather than the higher figure that applies federally to payment processors specifically, and that lower figure is itself defined by cross-reference to a federal provision that a 2025 federal tax law raised substantially. Vermont's own current guidance reflects the new, higher figure; an older snapshot of the same page from mid-2025 still showed the prior number, confirming this is a real, recent update rather than an old figure quietly persisting. A seller who last checked Vermont's rule before that update, or who is relying on a tax blog written before it, has an outdated number. Forming an LLC doesn't touch this dynamic either way. It only changes who's liable once Vermont's actual current figure applies to you.

If every one of your sales into Vermont runs through eBay, you do not need your own Vermont sales-tax registration — eBay is the one collecting and remitting. Your eBay sales count toward Vermont's $100,000 or 200 transactions threshold, so marketplace volume alone can push you over it. Vermont sets its own 1099-K threshold at $2,000, well below the federal $20,000 and 200 transactions — so a Vermont seller can get a 1099-K on volume that would trigger nothing federally.

eBay Collects Vermont Sales Tax. What Is Still Yours?

If every one of your sales into Vermont runs through eBay, you do not need your own Vermont sales-tax registration — eBay is the one collecting and remitting.

Vermont's own Sales Tax and Wayfair guidance answers the marketplace-only registration question directly: a remote seller who meets Vermont's threshold is required to register and collect, unless the marketplace is already collecting and remitting Vermont sales tax on their behalf. Because eBay does exactly that once notified, a seller selling exclusively through eBay is relieved of the independent registration requirement, the Department's marketplace-facilitator guidance corroborates this directly. That relief is about registration and collection, not about the separate 1099-K reporting question discussed above, which applies regardless of who is collecting sales tax.

Do Your eBay Sales Count Toward Vermont's Nexus Test?

Your eBay sales count toward Vermont's $100,000 or 200 transactions threshold, so marketplace volume alone can push you over it.

Vermont measures its remote-seller threshold on a rolling twelve-month lookback rather than a fixed calendar year, a detail that's easy to get wrong if you're used to how other states phrase their threshold. On the marketplace question, Vermont's Wayfair FAQ answers plainly: when determining whether you've crossed Vermont's threshold, you combine sales made through any marketplace with sales from your own website and any other source, meaning eBay-facilitated sales are folded into the same count as your direct sales here, unlike states that exclude marketplace volume from a seller's own threshold. Track your combined Vermont sales across every channel, not just your direct ones.

Vermont's 1099-K Threshold

Vermont sets its own 1099-K threshold at $2,000, well below the federal $20,000 and 200 transactions — so a Vermont seller can get a 1099-K on volume that would trigger nothing federally.

Vermont's figure isn't fixed by Vermont law. It tracks a federal reporting threshold that Congress indexes for inflation starting in 2027, so this number can move. It's worth re-checking for a later tax year rather than assuming it stays the same.

This is the finding that matters most for a Vermont seller. Vermont doesn't simply defer to the federal 1099-K dollar figure the way many states do, its statute directs third-party settlement organizations to apply a different, lower federal reference point, the same one used for general information returns rather than the higher payment-processor-specific figure. That underlying federal reference point was itself raised substantially by a 2025 federal law, and Vermont's current guidance reflects the new number. A Vermont seller who receives a 1099-K at a much lower dollar amount than sellers in other states isn't seeing a mistake. Vermont's own rule is genuinely different, and it recently moved higher than the figure many tax guides still quote.

Buying Inventory to Resell in Vermont

Vermont accepts a resale certificate issued by another state, so you can buy inventory for resale without registering here first.

Vermont is a full Streamlined Sales Tax (SST) member and hosts the SST Governing Board's multistate Certificate of Exemption (Form F0003) itself on tax.vermont.gov; the form's ID-number grid explicitly lists VT among the states for which a purchaser enters their existing (any-state) registration ID, with no VT-specific account required. VT's own Form S-3, by contrast, asks for a 'Vermont Sales & Use Tax Account Number' for its resale box, so an out-of-state seller who is not SST-registered anywhere should use F0003, not S-3.

Vermont is a full Streamlined Sales Tax member state and hosts the multistate exemption certificate directly on its own tax website, letting an out-of-state reseller who isn't registered anywhere buy for resale in Vermont using their own existing registration ID rather than a Vermont-specific number. Vermont's own single-state resale form, by contrast, does require a Vermont account number, so an unregistered out-of-state reseller should reach for the multistate certificate specifically rather than Vermont's own form. On secondhand goods, Vermont's only used-goods statute covers pawnbroking, licensed locally by a town's selectboard rather than the state, and its recordkeeping provisions apply only to pledge or loan transactions, not outright purchase-and-resale of ordinary used merchandise, which an eBay reseller isn't reached by.

Vermont has no statewide second-hand dealer licence reaching general resale. Vermont's only used-goods dealer statute located, 9 V.S.A. Chapter 97 ('Pawnbrokers'), was read in full text directly. Sec. 3862 (License required) provides licensing is granted locally -- 'The selectboard members of a town or the aldermen of a city may grant... a license authorizing such citizens to carry on the business of a pawnbroker' -- not by a state agency. Sec. 3865 (Records) applies only to loans/advances 'for items pledged or deposited' (i.e., pawn/pledge transactions), not outright purchase for resale. No general 'secondhand dealer' or 'junk dealer' statewide licensing chapter was found elsewhere in Vermont statutes. Per the scoping rule, this pawnbroker-only, locally-licensed chapter is coded 'none.'

Setting Up to Sell on eBay from Vermont

1. Confirm Vermont's current 1099-K figure directly with the Department

   Vermont's own number moved recently because of a federal change, and a lot of online advice still quotes the old figure. Check the Department's current page rather than trusting an older source.

2. Combine eBay and direct sales when checking Vermont's threshold

   Unlike some states, Vermont's own guidance folds marketplace-facilitated sales into the same rolling twelve-month count as your direct Vermont sales.

3. Form the LLC before your combined Vermont volume grows

   The entity is what stands between a dispute and your personal assets. Filing while your combined sales are still modest is simpler than doing it after volume has already grown.

4. Use Vermont's multistate certificate, not its single-state form, if unregistered

   Vermont's own single-state resale form requires a Vermont account number. An out-of-state reseller who isn't registered anywhere should use the Streamlined multistate certificate instead.

5. Reconcile every 1099-K against your actual books

   Vermont's lower reporting figure means you may receive a 1099-K sooner than sellers in other states. Matching its gross figure against your real net proceeds is what turns it into an accurate number.

Who to Ask in Vermont

The Vermont Department of Taxes administers both the sales-tax and 1099-K questions this page covers, though its website intermittently blocks automated access, so a direct phone call or in-person visit can be more reliable than searching online. The Vermont Secretary of State's Corporations Division is the office that forms and maintains your LLC. Because Vermont's 1099-K figure changed recently, confirm the current number directly with the Department rather than relying on older search results or third-party tax guides.

Sources

• https://tax.vermont.gov/business-and-corp/sales-and-use-tax/wayfair/faqs
• https://tax.vermont.gov/business-and-corp/sales-and-use-tax/wayfair
• https://tax.vermont.gov/business-and-corp/withholding-tax/1099-k
• https://legislature.vermont.gov/statutes/section/32/151/05862d
• https://tax.vermont.gov/sites/tax/files/documents/F0003.pdf
• https://tax.vermont.gov/sites/tax/files/documents/S-3.pdf
• https://legislature.vermont.gov/statutes/section/09/097/03862
• https://legislature.vermont.gov/statutes/section/09/097/03865
• https://tax.vermont.gov/businesses
• https://www.irs.gov/instructions/i1099k

Federal 1099-K threshold: IRC § 6050W(e), as amended by § 70432(a) of the One, Big, Beautiful Bill Act (P.L. 119-21, July 4, 2025). A third-party settlement organization such as eBay must file Form 1099-K only if BOTH tests are met for the calendar year: gross payments exceed $20,000 AND the number of transactions exceeds 200. These are the figures for tax year 2026. There is no forward phase-in: § 70432(a) takes effect "as if included in section 9674 of the American Rescue Plan Act," so the same $20,000 / 200 figures apply retroactively to calendar years after 2021 (tax years 2022 through 2026 alike). The $600 threshold enacted by ARPA § 9674 (P.L. 117-2) was repealed before it operated, and the IRS transition-relief thresholds previously announced for 2024 and 2025 are superseded. A platform may issue a 1099-K below these figures, and a state may set a lower TPSO threshold, in which case a seller can receive a 1099-K without meeting the federal test.. Verified 2026-08-08.