Frequently Asked Questions
Why do businesses barter?
Bartering is a tool to make your business grow. It allows you an opportunity to increase your business while supporting other local businesses too!
I need more cash business why should I barter?
The barter sales you make through VBN are truly additional business for you. If you did not belong to VBN, you would never see those sales. When you use the barter income from those sales to buy things you would otherwise have purchased with cash, you are left with cash in hand to use for other things. The net effect is the same as if your cash business is increasing.
Can I control how much bartering I do?
Absolutely! Barter transactions are intended to ‘fill the holes’ in your business. In addition, you may request that your account be placed on standby status (temporarily not selling) while you work on spending your barter dollars.
How much do some businesses barter?
Some members do generate more barter business than other members. On average, barter transactions account for a small percentage of your business.
How are my taxes affected by bartering?
Barter dollars are treated exactly the same as cash for tax purposes. The barter industry is officially recognized under the “Tax Equity & Fiscal Responsibility Act” of 1982 in which companies like ours are identified as third-party record keepers along with banks, securities brokers, attorneys and accountants. VBN fees are also tax deductible. If your business spends barter dollars on business-related items, those expenses should be offset against income – just like cash. If you or your employees spend barter dollars on personal items, those dollars are part of your taxable income – just like cash.
Does it make sense to barter for personal items?
It makes a lot of sense to pay yourself something extra out of the proceeds from any new business you can generate, whether it’s cash or barter. Barter is a great way to be able to pay yourself more without hurting your business. Other VBN members know how much sense that makes.
I already trade on my own. Why should I join the Vermont Barter Network?
One of the greatest benefits our members value is a network of trading opportunities! Typical one on one trade agreements require that two companies have an equal need for each other’s services at the same time, with an equal value.
How do I keep track of my barter business?
As a member of the Vermont Barter Network each month you will receive a statement that will inform you of your barter balance, sales, purchases, and payments received. You can also contact the office at any time for current balances, transaction assistance, or any other information you may need.