Sales and Use Tax Frequently Asked Questions
Sales and Use Tax Categories:
Registration for Sales and Use Tax Account
 How can I obtain a sales and use tax number?
| |
To obtain a sales and use tax account number you must submit
a completed Registration Application,
Form NC-BR, and mail it
to: N. C. Department of Revenue, Post Office Box 25000, Raleigh, N. C.
27640. You may obtain the Form NC-BR online, by mail,
by contacting
the Taxpayer Assistance Call Center at 1-877-252-3052 (toll free), or
by visiting one of the Taxpayer
Service Centers. After your application is processed, you will be
mailed information concerning your Sales and Use Tax Account ID and
pre-printed forms on which to report your sales and use tax and submit
with your payment. |
How long does it take to get a sales tax number?
| |
Up to four weeks. If you need the number sooner, you should
visit one of the Taxpayer Service Centers with
a fully completed Form NC-BR.
Sales tax numbers cannot be obtained over the telephone. |
How
do I obtain sales and use tax forms?
| |
Preprinted forms are automatically forwarded upon issuance
of a new Account ID and replacement forms are issued
annually to registered taxpayers. A Sales and Use Tax Return, Form
E-500,
can be obtained online or ordered by mail.
Forms can also be obtained by contacting the Taxpayer Assistance Call
Center at 1-877-252-3052 (toll free), or visiting one of the Taxpayer
Service Centers. |
Is there a fee charged to obtain a sales tax number?
| |
There is no fee charged for a Certificate of
Registration. |
Do I have to re-register for a new number if I move?
| |
No. Business Address Correction, Form
NC-AC, included with
the coupon book of return forms should be completed and submitted. |
Return to top of page
Filing Sales and Use Tax Returns
How can I file sales and use tax returns?
When are quarterly and monthly sales and use tax returns due?
| |
Quarterly returns are due on or before the last day of
January, April, July, and October for the preceding three-month period.
Monthly returns are due on or before the 20th of the month following
the end of the month. |
How do I file if I have not received my tax number or forms?
| |
You should file using a blank sales and use tax return
with the notation “Number Applied For” and include remittance
of the tax due. Form E-500 can
be obtained online or ordered by
mail. Forms can also be obtained
by contacting the Taxpayer Assistance Call Center at 1-877-252-3052 (toll
free), or visit one of the Taxpayer
Service Centers. |
How do I file a return if I have misplaced my coupon booklet?
| |
You may file online,
obtain a blank Form E-500, or visit
one of the Taxpayer
Service Centers. Do not use old forms or a different tax period coupon
to file a return. Using incorrect forms will create errors and delays
in the processing of returns. You may order replacement forms by contacting
the Taxpayer Assistance Call Center at 1-877-252-3052 (toll free). |
How do I file a return if my business makes no sales or purchases?
| |
A retailer who does not make any sales during a reporting
period must file a return for that period and indicate 0.00 on the “Total
Due” line. Similarly, a business that does not make any taxable
purchases during a reporting period must file a return for that period
and indicate 0.00 on the “Total Due” line. |
Where do I send my tax return?
| |
North Carolina Department of Revenue
Post Office Box 25000
Raleigh, North Carolina 27640-0700 |
Return to top of page
Online Filing for Sales and Use Tax
Can
I file my sales and use tax return and pay the tax online?
| |
You may file sales and use tax returns and pay
through Electronic
Services or call the E-Services Help line at 1-877-308-9103
(toll free) or 919-733-1674 between the hours of 8:00 am to 5:00 pm Monday
through Friday. The E-File system offers the convenience of filing returns
and paying tax 24 hours a day, 7 days a week. |
Return to top of page
Filing Frequency and Due Dates
How do I determine my filing frequency and due dates?
| |
Your preprinted sales and use tax returns issued by
the Department will indicate your filing frequency based on your response
to the question on the Registration Application, Form NC-BR, regarding
the amount of sales tax expected per month.
If you answered that your
tax liability is consistently more than $100 but less than $10,000
per month, you should file a return monthly and pay taxes on or before
the 20th day of each month for all taxes due for the preceding calendar
month.
If you answered that your tax liability is consistently less
than $100 per month, you should file a return quarterly and pay taxes
due on or before the last day of the month for all taxes due for the
preceding calendar quarter.
If you answered that your tax liability is at least $10,000 a month,
you should file a return monthly and pay taxes on or before the 20th
day of each month for all taxes due for the preceding calendar month
and include a prepayment for the next month’s tax liability.
The prepayment must equal at least 65% of any of the following:
(1) the amount of tax due for the current month,
(2) the amount of tax due for the same month in the preceding year, or
(3) the average monthly amount of tax due in the preceding calendar year.
Penalties or interest will not be due on an underpayment of a prepayment if
one of these three calculation methods is used.
Payments must be made electronically either online
or by Electronic Funds Transfer (EFT).
|
When
is the sales and use tax return due if the due date falls on a Saturday,
Sunday, or a holiday?
| |
The return is due the business day following the Saturday,
Sunday, or a holiday. |
Return to top of page
Business Requirements
What
is the North Carolina sales and use tax rate?
| |
Most property is subject to the 4.25% State and 2.5%
(2.75% in Alexander, Catawba, Martin, Pitt, Sampson, and Surry Counties, and
3% in Mecklenburg County) local rate of tax for a combined 6.75% (7% in Alexander,
Catawba, Martin, Pitt, Sampson, and Surry Counties, and 7.25% in Mecklenburg County)
rate. |
Are wholesale merchants required to file a return?
| |
A person who engages exclusively in the business of making
wholesale sales is not required to file a return. A person who, on two
or more occasions within a twelve-month period, either makes taxable
sales to users, consumers, or non-registered merchants or makes purchases
subject to use tax is not engaged exclusively in the business of making
wholesale sales and must begin filing sales and use tax returns. A wholesale
merchant who is not required to file a sales and use tax return and who,
on only one occasion within a twelve-month period, either makes taxable
sales to users, consumers, or non-registered merchants or makes purchases
subject to use tax must file a return for that month only and pay the
tax due within 20 days after the end of the month in which the sale or
purchase was made. |
If I have a seasonal business, can I file just for those months
that I operate?
| |
A retailer who engages in business for six or fewer consecutive
months in each year may register as a seasonal filer and indicate the
months in which the retailer engages in business. A retailer who is registered
as a seasonal filer is not required to file a return for an off-season
reporting period in which the retailer did not engage in business. |
If I am presently registered as a proprietorship or partnership,
what do I need to do if I incorporate?
| |
The corporation must apply for a new Account ID. |
If I purchase an existing business, may I use the sales tax number
of the previous owner?
| |
No. A new owner must obtain his own Account ID. |
How do I cancel or inactivate a tax number?
| |
Complete and submit the Out-of-Business Notification,
Form NC-BN, included with your
coupon book of report forms. |
Can a certificate of registration be cancelled for inactivity?
| |
Yes. A certificate of registration issued to a retailer
who makes taxable sales becomes void if, for a period of 18 months, the
retailer files no returns or files returns showing no sales. Annually,
the Department reviews sales and use tax accounts and cancels the sales
and use tax registration numbers of those accounts that have file returns
showing no sales for the past 18 months. If your account is cancelled
for this purpose, you will be notified by mail and given an opportunity
to reactivate your account. |
Do flea market vendors need to be register?
| |
Yes. Flea market vendors must obtain a Certificate
of Registration and it must be posted at their location. |
Are
any services taxable?
| |
Generally services are exempt from sales or use tax, but laundry and dry
cleaning services are taxable at the combined 6.75% (7% in Alexander, Catawba, Martin,
Pitt, Sampson, and Surry Counties, and 7.25% in Mecklenburg County) State and local tax
rates. Telecommunications service and ancillary service, and video programming are
taxable at the combined 7% general tax rate. |
Are
lottery ticket sales taxable?
| |
No. Lottery ticket sales are not subject to sales or use
tax; however, these sales should be included on Sales and Use Tax Return,
Form E-500, Line 1, North Carolina Gross Receipts, along with other sales
made during the reporting period. Lottery ticket sales should also be
included on Line 3, Receipts Exempt From State Tax. |
Return to top of page
Penalties and Assessments
Is there a penalty if my return is late and no tax is owed?
| |
No. Penalty and interest is not due but the return must
be filed. |
Is there a penalty for late filing of tax returns?
| |
Yes. If tax is due, both a failure to file penalty of 5%
per month or fraction thereof with a maximum of 25% (minimum $5.00 State
and $5.00 county) and a failure to pay penalty of 10% (minimum $5.00
State and $5.00 county) will be due. Interest is due on the amount of
tax due from the date the tax was due until it is paid. |
Return to top of page
Last modified on:
04/01/08 09:34:28 AM.
|
|
