Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a large bowl, whisk together flour, sugar, cocoa powder, baking soda, baking powder, and salt.
In a separate bowl, combine buttermilk, oil, eggs, and vanilla extract. Mix well.
Add the wet ingredients to the dry ingredients and mix until just combined. Do not overmix.
In a small bowl, combine vinegar and red food coloring. Add to the batter and mix until well combined.
Pour batter evenly into prepared cake pans.
Bake for 30-35 minutes, or until a toothpick inserted into the center comes out clean. Let cool in pans for 10 minutes before inverting onto a wire rack to cool completely.
For the frosting: In a large bowl, beat cream cheese and butter until smooth and creamy. Gradually add powdered sugar, beating until smooth. Stir in vanilla extract.
Once cakes are completely cooled, frost the top of one layer and place the second layer on top. Frost the entire cake.