Repair, Maintenance, and Installation Services; and Other Repair Information

The sales price of or the gross receipts derived from repair, maintenance, and installation services sold at retail is subject to the general State and applicable local and transit rates of sales and use tax. Repair, maintenance, and installation services is defined in N.C. Gen. Stat. § 105-164.3 and are sourced in accordance with the sourcing principles set forth in N.C. Gen. Stat. § 105-164.4B.

The term "installation charges" is part of the definition of "sales price" as defined in N.C. Gen. Stat. § 105-164.3. Installation charges by a retailer to a purchaser as part of the retail sale of tangible personal property, certain digital property, and taxable services are subject to the applicable rate of sales and use tax for the item as set forth in N.C. Gen. Stat. § 105-164.4(a), no matter that the installation charges may be separately stated by the retailer.

For a business or person who is not registered with the Department and is required to collect and/or remit the sales or use tax on the sales price of or the gross receipts derived from repair, maintenance, and installation services sold at retail, register online using the online business registration portal. Gross receipts derived from repair, maintenance, and installation services and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.

Technical Publications for Repair, Maintenance, and Installation Services

Other Repair Information