diff --git a/accounts/abi/bind/backends/simulated.go b/accounts/abi/bind/backends/simulated.go
index 09288d401e..0f36b3373f 100644
--- a/accounts/abi/bind/backends/simulated.go
+++ b/accounts/abi/bind/backends/simulated.go
@@ -272,8 +272,8 @@ func (b *SimulatedBackend) callContract(ctx context.Context, call ethereum.CallM
 	// about the transaction and calling mechanisms.
 	vmenv := vm.NewEVM(evmContext, statedb, b.config, vm.Config{})
 	gaspool := new(core.GasPool).AddGas(math.MaxBig256)
-	ret, gasUsed, _, failed, err := core.NewStateTransition(vmenv, msg, gaspool).TransitionDb()
-	return ret, gasUsed, failed, err
+	ret, gasUsed, _, vmerr, err := core.NewStateTransition(vmenv, msg, gaspool).TransitionDb()
+	return ret, gasUsed, vmerr != nil, err
 }
 
 // SendTransaction updates the pending block to include the given transaction.
diff --git a/core/state_processor.go b/core/state_processor.go
index 689c83785f..02b5920f2f 100644
--- a/core/state_processor.go
+++ b/core/state_processor.go
@@ -98,7 +98,7 @@ func ApplyTransaction(config *params.ChainConfig, bc *BlockChain, author *common
 	// about the transaction and calling mechanisms.
 	vmenv := vm.NewEVM(context, statedb, config, cfg)
 	// Apply the transaction to the current state (included in the env)
-	_, gas, failed, err := ApplyMessage(vmenv, msg, gp)
+	_, gas, vmerr, err := ApplyMessage(vmenv, msg, gp)
 	if err != nil {
 		return nil, nil, err
 	}
@@ -114,7 +114,7 @@ func ApplyTransaction(config *params.ChainConfig, bc *BlockChain, author *common
 
 	// Create a new receipt for the transaction, storing the intermediate root and gas used by the tx
 	// based on the eip phase, we're passing wether the root touch-delete accounts.
-	receipt := types.NewReceipt(root, failed, usedGas)
+	receipt := types.NewReceipt(root, vmerr != nil, usedGas)
 	receipt.TxHash = tx.Hash()
 	receipt.GasUsed = new(big.Int).Set(gas)
 	// if the transaction created a contract, store the creation address in the receipt.
diff --git a/core/state_transition.go b/core/state_transition.go
index e7a0685893..2182ac8838 100644
--- a/core/state_transition.go
+++ b/core/state_transition.go
@@ -124,12 +124,13 @@ func NewStateTransition(evm *vm.EVM, msg Message, gp *GasPool) *StateTransition
 // ApplyMessage returns the bytes returned by any EVM execution (if it took place),
 // the gas used (which includes gas refunds) and an error if it failed. An error always
 // indicates a core error meaning that the message would always fail for that particular
-// state and would never be accepted within a block.
-func ApplyMessage(evm *vm.EVM, msg Message, gp *GasPool) ([]byte, *big.Int, bool, error) {
+// state and would never be accepted within a block.  A VM error indicates an error whilst
+// executing the code.
+func ApplyMessage(evm *vm.EVM, msg Message, gp *GasPool) ([]byte, *big.Int, error, error) {
 	st := NewStateTransition(evm, msg, gp)
 
-	ret, _, gasUsed, failed, err := st.TransitionDb()
-	return ret, gasUsed, failed, err
+	ret, _, gasUsed, vmerr, err := st.TransitionDb()
+	return ret, gasUsed, vmerr, err
 }
 
 func (st *StateTransition) from() vm.AccountRef {
@@ -209,7 +210,7 @@ func (st *StateTransition) preCheck() error {
 // TransitionDb will transition the state by applying the current message and returning the result
 // including the required gas for the operation as well as the used gas. It returns an error if it
 // failed. An error indicates a consensus issue.
-func (st *StateTransition) TransitionDb() (ret []byte, requiredGas, usedGas *big.Int, failed bool, err error) {
+func (st *StateTransition) TransitionDb() (ret []byte, requiredGas, usedGas *big.Int, vmerr error, err error) {
 	if err = st.preCheck(); err != nil {
 		return
 	}
@@ -223,18 +224,14 @@ func (st *StateTransition) TransitionDb() (ret []byte, requiredGas, usedGas *big
 	// TODO convert to uint64
 	intrinsicGas := IntrinsicGas(st.data, contractCreation, homestead)
 	if intrinsicGas.BitLen() > 64 {
-		return nil, nil, nil, false, vm.ErrOutOfGas
+		return nil, nil, nil, nil, vm.ErrOutOfGas
 	}
 	if err = st.useGas(intrinsicGas.Uint64()); err != nil {
-		return nil, nil, nil, false, err
+		return nil, nil, nil, nil, err
 	}
 
 	var (
 		evm = st.evm
-		// vm errors do not effect consensus and are therefor
-		// not assigned to err, except for insufficient balance
-		// error.
-		vmerr error
 	)
 	if contractCreation {
 		ret, _, st.gas, vmerr = evm.Create(sender, st.data, st.gas, st.value)
@@ -249,7 +246,7 @@ func (st *StateTransition) TransitionDb() (ret []byte, requiredGas, usedGas *big
 		// sufficient balance to make the transfer happen. The first
 		// balance transfer may never fail.
 		if vmerr == vm.ErrInsufficientBalance {
-			return nil, nil, nil, false, vmerr
+			return nil, nil, nil, vmerr, vmerr
 		}
 	}
 	requiredGas = new(big.Int).Set(st.gasUsed())
@@ -257,7 +254,7 @@ func (st *StateTransition) TransitionDb() (ret []byte, requiredGas, usedGas *big
 	st.refundGas()
 	st.state.AddBalance(st.evm.Coinbase, new(big.Int).Mul(st.gasUsed(), st.gasPrice))
 
-	return ret, requiredGas, st.gasUsed(), vmerr != nil, err
+	return ret, requiredGas, st.gasUsed(), vmerr, err
 }
 
 func (st *StateTransition) refundGas() {
diff --git a/eth/api.go b/eth/api.go
index e91f51bb99..a3d2e3b839 100644
--- a/eth/api.go
+++ b/eth/api.go
@@ -523,7 +523,7 @@ func (api *PrivateDebugAPI) TraceTransaction(ctx context.Context, txHash common.
 
 	// Run the transaction with tracing enabled.
 	vmenv := vm.NewEVM(context, statedb, api.config, vm.Config{Debug: true, Tracer: tracer})
-	ret, gas, failed, err := core.ApplyMessage(vmenv, msg, new(core.GasPool).AddGas(tx.Gas()))
+	ret, gas, vmerr, err := core.ApplyMessage(vmenv, msg, new(core.GasPool).AddGas(tx.Gas()))
 	if err != nil {
 		return nil, fmt.Errorf("tracing failed: %v", err)
 	}
@@ -531,7 +531,7 @@ func (api *PrivateDebugAPI) TraceTransaction(ctx context.Context, txHash common.
 	case *vm.StructLogger:
 		return &ethapi.ExecutionResult{
 			Gas:         gas,
-			Failed:      failed,
+			Failed:      vmerr != nil,
 			ReturnValue: fmt.Sprintf("%x", ret),
 			StructLogs:  ethapi.FormatLogs(tracer.StructLogs()),
 		}, nil
diff --git a/internal/ethapi/api.go b/internal/ethapi/api.go
index 59a29d7226..1eab4776fa 100644
--- a/internal/ethapi/api.go
+++ b/internal/ethapi/api.go
@@ -580,12 +580,12 @@ type CallArgs struct {
 	Data     hexutil.Bytes   `json:"data"`
 }
 
-func (s *PublicBlockChainAPI) doCall(ctx context.Context, args CallArgs, blockNr rpc.BlockNumber, vmCfg vm.Config) ([]byte, *big.Int, bool, error) {
+func (s *PublicBlockChainAPI) doCall(ctx context.Context, args CallArgs, blockNr rpc.BlockNumber, vmCfg vm.Config) ([]byte, *big.Int, error, error) {
 	defer func(start time.Time) { log.Debug("Executing EVM call finished", "runtime", time.Since(start)) }(time.Now())
 
 	state, header, err := s.b.StateAndHeaderByNumber(ctx, blockNr)
 	if state == nil || err != nil {
-		return nil, common.Big0, false, err
+		return nil, common.Big0, nil, err
 	}
 	// Set sender address or use a default if none specified
 	addr := args.From
@@ -623,7 +623,7 @@ func (s *PublicBlockChainAPI) doCall(ctx context.Context, args CallArgs, blockNr
 	// Get a new instance of the EVM.
 	evm, vmError, err := s.b.GetEVM(ctx, msg, state, header, vmCfg)
 	if err != nil {
-		return nil, common.Big0, false, err
+		return nil, common.Big0, nil, err
 	}
 	// Wait for the context to be done and cancel the evm. Even if the
 	// EVM has finished, cancelling may be done (repeatedly)
@@ -635,11 +635,11 @@ func (s *PublicBlockChainAPI) doCall(ctx context.Context, args CallArgs, blockNr
 	// Setup the gas pool (also for unmetered requests)
 	// and apply the message.
 	gp := new(core.GasPool).AddGas(math.MaxBig256)
-	res, gas, failed, err := core.ApplyMessage(evm, msg, gp)
+	res, gas, vmerr, err := core.ApplyMessage(evm, msg, gp)
 	if err := vmError(); err != nil {
-		return nil, common.Big0, false, err
+		return nil, common.Big0, nil, err
 	}
-	return res, gas, failed, err
+	return res, gas, vmerr, err
 }
 
 // Call executes the given transaction on the state for the given block number.
@@ -673,8 +673,8 @@ func (s *PublicBlockChainAPI) EstimateGas(ctx context.Context, args CallArgs) (*
 	// Create a helper to check if a gas allowance results in an executable transaction
 	executable := func(gas uint64) bool {
 		(*big.Int)(&args.Gas).SetUint64(gas)
-		_, _, failed, err := s.doCall(ctx, args, rpc.PendingBlockNumber, vm.Config{})
-		if err != nil || failed {
+		_, _, vmerr, err := s.doCall(ctx, args, rpc.PendingBlockNumber, vm.Config{})
+		if err != nil || vmerr != nil {
 			return false
 		}
 		return true