Free Vermont Bill of Sale Template & Generator

Vermont Bill of Sale Requirements

Additional Forms Required in Vermont

• Form VT-005 (Bill of Sale and Odometer Disclosure)
• Form VD-119 (Registration, Tax, and Title Application)

Vermont publishes a combined bill of sale and odometer form — VT-005, the Bill of Sale and Odometer Disclosure Statement — which handles both jobs in one document. It should not be confused with VD-119, the Registration, Tax, and Title Application that the buyer actually files with the DMV. Our generator produces a VT-005-style bill of sale to accompany that application.

The tax is a 6% Purchase and Use Tax, and the detail that trips people up is the valuation source: Vermont uses the J.D. Power clean trade-in value, not NADA, and charges the tax on the greater of that value or your purchase price. A lowball price on the paperwork won't reduce the tax below book value. The title fee is $42, paid when you register — and in Vermont you must register before driving the vehicle on public roads, with new residents given 60 days from the date they move.

Vermont's titling landscape changed recently. Under Act 165 of 2024, the state now issues titles to essentially all vehicles at sale or registration, so the long-standing "15 model years and older are exempt from titling" rule no longer helps a new buyer of an older vehicle. Expect a real title transfer even on an older car.

Inspection is another area where old guidance misleads. Vermont requires an annual safety inspection at a licensed station, and for model-year-16-and-newer vehicles that inspection includes an OBD emissions check — so the claim that "Vermont has no emissions testing" is wrong. Notarization is not required for the ordinary bill of sale or title assignment, and plates stay with the seller to transfer or surrender. Between the J.D. Power tax basis, the Act 165 titling change, and the emissions-inclusive inspection, Vermont rewards using current information over the older summaries that still circulate online.