Any business that sells goods or taxable services within the state of North Carolina to customers located in North Carolina is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in North Carolina must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in North Carolina?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in North Carolina
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in North Carolina (including independent contractors, sales persons, representatives, or agents)
- Your business has taxable services in the state of North Carolina
What constitutes taxable services in North Carolina State?
The majority of service businesses are not taxable in North Carolina, but there are some exceptions. Service business that manufacture, repair, maintenance, install a product. Dry cleaning and laundry services, Telecommunications services, Satellite digital audio services,
Video Programming services, prepaid telephone calling services, service contracts, and admission charges to entertainment activities are all taxable services
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of North Carolina?
As a wholesale company conducting business in the state of North Carolina, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Connecticut that are taxable than you would charge sales tax on shipping and handling charges. However, if taxable and nontaxable items are being shipped together, you must pay sales tax for shipping on the percentage of the sale that’s taxable.
Is there sales tax on drop shipments in the state of Connecticut?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in North Carolina are exempt and therefor are required to have sales tax added
Are there any exemptions to taxable items sold?
Leases and rentals of motor vehicles, safety apparel, medical devices, groceries, raw materials, and custom downloadable software are tax exempt
Register for a North Carolina sales/use tax number
North Carolina state, county, city, & municipal tax rate table