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Free Vermont Vehicle Bill of Sale

Vermont treats the bill of sale as the cornerstone of every vehicle transfer — even for the surprising number of older cars that move on no title at all. A Vermont-registered 1995 pickup or 2008 hatchback may have no title, so it changes hands with Form VT-005, the seller's Vermont registration certificate, and Form VD-119 — and since July 1, 2024 the buyer is issued a Vermont title at registration. The 6% Purchase and Use Tax is calculated by VT DMV at the counter using the higher of your bill-of-sale price or J.D. Power clean trade-in value, and while Vermont law sets no fixed filing deadline for the buyer (23 V.S.A. §2023), the vehicle cannot be driven on Vermont roads until it is registered. A clean VT-005 with VIN, odometer, price, and signatures keeps the transaction clear when VT DMV compares the price with the J.D. Power value.

Vermont Requirements: Vermont law sets no fixed deadline for the buyer (23 V.S.A. §2023); the DMV's 60 days applies only to people moving to Vermont. 6% sales tax.

Seller Information

Buyer Information

Vehicle Details

Sale Information

Condition & Warranty

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Transferring any motor vehicle? Our guide covers VIN verification, title transfer timelines, payment safety, and the eight things to do before handing over the keys — applicable to any car, truck, or SUV. Read: Car Bill of Sale: Complete Guide →

Vermont Vehicle Bill of Sale — What You Need to Know

Primary Form
Vermont Bill of Sale
Agency
Vermont Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
6%
Title Required
Yes
Since Act 165 (July 1, 2024), the buyer gets a Vermont title at registration for any car or truck. A Vermont-registered vehicle of model year 2009 or older may have no title: the seller gives the buyer the Vermont registration certificate and a signed bill of sale. For titled vehicles, the seller signs off the back of the Vermont title and the buyer files Form VD-119 (Registration, Tax & Title Application) — Vermont law sets no fixed day count for it.
Inspection
Required

Sales Tax Details

Vermont charges a 6% Purchase and Use Tax on motor vehicles, collected by the VT DMV at title transfer. Tax is calculated on the higher of sale price or J.D. Power clean trade-in value, so a low number on the bill of sale will not reduce tax owed.

Exemption: A vehicle received as a gift can be exempt from the Purchase and Use Tax — file Form VT-014 (Certification of Tax Exemption) with VD-119, and check the DMV's list of allowable exemptions.

Inspection Requirements

Vermont requires an annual safety inspection at a VT-certified inspection station before registration; the sticker goes on the windshield. The annual inspection also includes an emissions (OBD) check for gas and diesel vehicles 16 model years old or newer with a GVWR of 8,500 pounds or less.

Vermont Vehicle Sale — Step-by-Step Checklist

  1. Use Form VT-005 (Vermont Bill of Sale) with full VIN, year, make, model, odometer reading, sale price, and date
  2. Print and sign both buyer and seller names; Vermont does not require notarization for VT-005
  3. If the vehicle has a title, have the seller complete the assignment on the back of it
  4. For older vehicles with no title, attach the prior Vermont registration to the bill of sale
  5. File Form VD-119 with VT DMV before driving on Vermont roads to register, title, and pay 6% Purchase and Use Tax
  6. Schedule a Vermont annual safety inspection at a certified station before driving past the temporary period

Common Pitfalls

  • Writing a low "gift" or "favor" price — VT DMV taxes on J.D. Power clean trade-in value when the bill of sale undercuts it, so you pay 6% either way
  • Driving the vehicle on Vermont roads before VT DMV has registered it in your name
  • Assuming a no-title vehicle is junk — a Vermont-registered car of model year 2009 or older can legally sell on a bill of sale plus the Vermont registration certificate, and the buyer then gets a title
  • Forgetting the annual Vermont inspection sticker; troopers ticket on expired stickers and registration cannot renew without one

Pro Tip

Vermont’s bill-of-sale process is straightforward: no fixed filing deadline in state law, 6% tax on the greater of price or J.D. Power clean trade-in value, and registration plus a current inspection sticker before you drive. Use Form VT-005, file VD-119 promptly, and keep your copies.

Vermont Vehicle Bill of Sale — FAQs

Do I really not need a title for an older car in Vermont?
Not anymore for the buyer. If the seller has a Vermont registration for a model year 2009 or older vehicle, there may be no title: you get Form VT-005 (Bill of Sale) plus the seller's Vermont registration certificate. Since Act 165 (July 1, 2024), the DMV then issues you a Vermont title when you register. You still owe the 6% Purchase and Use Tax.
How much tax will VT DMV charge me when I file VD-119?
Vermont assesses 6% Purchase and Use Tax on the higher of your bill-of-sale price or the J.D. Power clean trade-in value. On a $12,000 sedan, expect $720. Because the tax is on whichever is greater, a deflated bill of sale does not reduce tax. Some family transfers may be exempt — check the DMV's list of allowable exemptions.
How long do I have to file the bill of sale and title with VT DMV?
Vermont law sets no fixed deadline for the buyer (23 V.S.A. §2023) — the DMV’s 60 days is for people moving to Vermont. File Form VD-119 with the bill of sale and assigned title at any VT DMV office before you drive the vehicle, because it cannot be operated on Vermont roads until it is registered. Do not let the paperwork sit on the kitchen table.
Does Vermont require a safety inspection before I can register?
Yes. Vermont mandates an annual safety inspection at a state-certified inspection station, and the windshield sticker must be current to register and drive. The inspection checks brakes, tires, lights and steering, and also includes an emissions (OBD) check for gas and diesel vehicles 16 model years old or newer. Plan on the inspection within a few days of purchase; without a current sticker you cannot legally drive past the brief temp-tag window.