If your business is operating in North Carolina, you may need to register for sales tax with the state. Sales tax registration is required for businesses that sell tangible personal property or certain services in the state, and it is important to ensure compliance with state tax laws.
How to get a North Carolina Sales Tax License
There are 2 sales tax setup tasks you may need to complete in North Carolina to get your sales tax licence. You can follow the guide below to help you get registered directly with the North Carolina agencies or use Mosey to do it.
Use Mosey to register for sales tax in North Carolina.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
North Carolina Sales and Use Tax Setup for LLC, LLP, Corporation
In general, if you sell tangible personal property and taxable services in North Carolina, you are "engaged in business" in the state as a "seller" and must register with the North Carolina Department of Revenue to collect and pay sales tax. If you are a seller with a physical presence in North Carolina, you have physical nexus for sales tax purposes. If you have made at least 200 transactions or $100,000 in gross sales sourced to North Carolina in the previous or current calendar year, you have economic nexus for sales tax purposes. If your products are exclusively sold through a marketplace facilitator (e.g. Amazon or Etsy) that's "engaged in business" in North Carolina, you do not have economical nexus and are generally not required to register to collect sales tax, your marketplace facilitator is responsible for sales tax. Note: SaaS is not considered a taxable service in North Carolina. In general, nonprofits are required to collect and remit sales and use taxes on any retail sales. A qualified 501(c)(3) organization approved by the Department of Revenue may seek semiannual refunds of the sales and use tax that it paid on purchases of items that are used to carry out their nonprofit work.
Apply for Certificate of Registration
Use the Online Business Registration tool to apply for a Certificate of Registration (i.e. sales tax account number) with the North Carolina Department of Revenue. Your sales tax account number is typically issued immediately, otherwise, you will get a tracking ID for your registration, and your account number will be mailed to you in up to four weeks. Note: You can also apply for Income Tax Withholding at the same time.
North Carolina Sales Tax Refund Determination for Corporation
501(c)(3) nonprofits must submit a request to the North Carolina Department of Revenue to determine their eligibility to receive refunds on sales and use tax paid on purchases of items solely used to carry out the nonprofit's purpose. Organizations must also provide copies of their: (1) FEIN, (2) IRS Determination Letter, (3) National Taxonomy of Exempt Entities (NTEE) Code, and (4) If unincorporated, the organization's ByLaws, Constitution, or other organizational documents. Note: An approved nonprofit organization is eligible to request refunds semi-annually. 501(c)(3) nonprofits may purchase tangible personal property for resale without paying sales and use tax by providing the vendor(s) with a properly completed Streamlined Sales and Use Tax Certificate of Exemption (Form E-595E).
Request a Sales Tax Refund Determination
Mail your written request for determination of eligibility to receive a refund on qualified purchases and the required supporting documents to the North Carolina Department of Revenue.
North Carolina Sales Tax Filing Requirements & Deadlines
There are 2 sales tax filing requirements & deadlines you may need to complete in North Carolina. You can follow the guide below or use Mosey to do it.
North Carolina Sales and Use Tax Filing for LLC, LLP, Corporation
If you are registered to collect sales tax, the North Carolina Department of Revenue (NCDOR) will assign you a filing frequency for sales tax returns based on your sales tax liability. You must file a return even if no sales tax was collected in a reporting period. If your sales tax liability is consistently less than $100 per month, your filing frequency is quarterly; Your return and payment are due on the last day of the month after the reporting period. If your sales tax liability is consistently more than $100 but less than $20,000 per month, your filing frequency is monthly; Your return and payment are due on 20th day of the month after the reporting period. If your sales tax liability is at least $20,000 a month, you are a "monthly with prepayment" filer; You must include a prepayment for the next month’s tax liability with your monthly filing.
File Sales and Use Tax Return (Form E-500) Online
File and pay Sales and Use Tax Return (Form E-500) online using the DOR's eServices web form or eBusiness Center systems.
