Sales and Use Tax Directive 25-2
Marketplace-Facilitated Sales of Boats
Issued By: Sales and Use Tax Division
Law: N.C. Gen. Stat. § 105-164.4J
Date: December 5, 2025
Number: SD-25-2
The purpose of this directive is to provide guidance to boat dealers and brokers that meet the definition of marketplace facilitator.
The following important information is addressed in this directive:
- Boat Dealers and Brokers Acting as a Marketplace Facilitator
- Tax Due on Marketplace-Facilitated Sales of Boats by Boat Dealers or Brokers
- Examples
Overview
Effective February 1, 2020, a marketplace facilitator engaged in business1 in this State is considered the retailer of each marketplace-facilitated sale it makes and is liable for collecting and remitting the sales and use tax due on all such sales.2 A boat dealer or broker that meets the definition of a marketplace facilitator must comply with these requirements.
Definitions3
“Marketplace” is defined as “[a] physical or electronic place, forum, platform, application, or other method by which a marketplace seller sells or offers to sell items, the delivery of or first use of which is sourced to this State.”
“Marketplace-facilitated sale” is defined as “[t]he sale of an item by a marketplace facilitator on behalf of a marketplace seller that occurs through a marketplace.”
“Marketplace facilitator” is defined as “[a] person that, directly or indirectly and whether through one or more affiliates, does both of the following:
- Lists or otherwise makes available for sale a marketplace seller's items through a marketplace owned or operated by the marketplace facilitator.
- Does one or more of the following:
- Collects the sales price or purchase price of a marketplace seller's items or otherwise processes payment.
- Makes payment processing services available to purchasers for the sale of a marketplace seller's items.”
“Marketplace seller” is defined as "[a] person that sells or offers to sell items through a marketplace regardless of any of the following:
- Whether the person has a physical presence in this State.
- Whether the person is registered as a retailer in this State.
- Whether the person would have been required to collect and remit sales and use tax had the sales not been made through a marketplace.
- Whether the person would not have been required to collect and remit sales and use tax had the sales not been made through a marketplace.”
“Retailer” is defined as “[a]ny of the following persons:
- A person engaged in business of making sales at retail, offering to make sales at retail, or soliciting sales at retail of items sourced to this State. When the Secretary finds it necessary for the efficient administration of this Article to regard any sales representatives, solicitors, representatives, consignees, peddlers, or truckers as agents of the dealers, distributors, consignors, supervisors, employers, or persons under whom they operate or from whom they obtain the items sold by them regardless of whether they are making sales on their own behalf or on behalf of these dealers, distributors, consignors, supervisors, employers, or persons, the Secretary may so regard them and may regard the dealers, distributors, consignors, supervisors, employers, or persons as ‘retailers’ for the purpose of this Article.
- A person, other than a real property contractor, engaged in business of delivering, erecting, installing, or applying tangible personal property or certain digital property for use in this State.
- A person engaged in business of making a remote sale, if one of the conditions listed in [N.C. Gen. Stat. §] 105-164.8(b) is met.
- A person required to collect the State tax levied under this Article or the local taxes levied under Subchapter VIII of this Chapter and under Chapter 1096 of the 1967 Session Laws.
- A marketplace facilitator that is subject to the requirements of [N.C. Gen. Stat. §] 105-164.4J or a facilitator that is required to collect and remit the tax under this Article.”
Boat Dealers and Brokers Acting as a Marketplace Facilitator
A person who sells boats and meets the definition of a retailer must collect and remit the sales and use tax due on sales sourced to North Carolina. This includes a boat dealer or broker that meets the definition of a marketplace facilitator engaged in business in this State.
A boat dealer or broker is a marketplace facilitator when they, directly or indirectly and whether through one or more affiliates, do both of the following:
- Lists or otherwise makes available for sale a marketplace seller's items through a marketplace owned or operated by the marketplace facilitator, and
- Does one or more of the following:
- Collects the sales price or purchase price of a marketplace seller's items or otherwise processes payment.
- Makes payment processing services available to purchasers for the sale of a marketplace seller's items.
Importantly, a marketplace includes both physical and electronic marketplaces. As a result, a boat dealer or broker’s lot where boats are offered for sale is considered a marketplace. In addition, a boat dealer or broker’s website where boats are offered for sale is considered a marketplace.
In specific cases, a boat dealer or broker may be involved in the sale of a boat but does not meet the definition of a marketplace facilitator. This includes when the boat dealer or broker does not, directly or indirectly and whether through one or more affiliates, do any of the following:
- make payment processing services available to purchasers for the sale of a marketplace seller's boat,
- collect the sales price or purchase price of the marketplace seller's boat, or
- otherwise process payments.
Tax Due on Marketplace-Facilitated Sales of Boats by Boat Dealers or Brokers
A marketplace facilitator engaged in business in the State is required to comply with the same requirements and procedures as all other retailers. The marketplace facilitator must collect and remit tax whether or not the marketplace seller meets any of the following conditions:
- Has a physical presence in this State.
- Is required to be registered to collect and remit sales and use tax in this State.
- Would have been required to collect and remit sales and use tax in this State had the sale not been made through a marketplace.
- Would not have been required to collect and remit sales and use tax in this State had the sale not been made through a marketplace
The tax due on a marketplace-facilitated sale of a boat is the same as other boat sales. The tax rate is three percent (3%) of the sales price of each boat sold at retail, including all accessories attached to the boat when it is delivered to the purchaser.4 The maximum tax is one thousand five hundred dollars ($1,500) per article.
Please reference Sales and Use Tax Bulletin 15 - Boats and Related Items for additional guidance, including the imposition and computation of tax, exemptions related to boats, and examples of items considered boats.
Registration
If a boat dealer or broker is a marketplace facilitator engaged in business in this State and does not have a certificate of registration from the Department, the dealer or broker must register and obtain a certificate of registration. A boat dealer or broker who already has a certificate of registration from the Department does not need to register a second time.
Marketplace facilitators can register by using the Department’s online business registration portal or by submitting a completed Form NC-BR, Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge. There is no fee to apply for a certificate of registration.
In addition, North Carolina is a full member of the Streamlined Sales and Use Tax Governing Board. Marketplace facilitators can register for all 24 Streamlined member states by completing one online application through the Streamlined Sales Tax Registration System. There is no fee to complete and submit this online registration form.
Examples
Example 1. A North Carolina retailer has a location in Greensboro, North Carolina. The retailer agrees to let sellers leave used boats for sale on its lot in exchange for a fee. The retailer negotiates the sale of these boats and collects payment.
A seller places a boat for sale on the lot and agrees to pay a flat fee of $250 to the retailer. A customer agrees to purchase the boat for $2,000. The customer will pick up the boat from the lot in Greensboro. The retailer will collect $2,000 from the purchaser and will retain $250 from the sales price to pay its fee.
The retailer is engaged in business in the State because it is located in North Carolina. The retailer is acting as a marketplace facilitator for the sale because it made the seller’s boat available for sell on its lot and will collect payment. The retailer must collect and remit $60 of tax on the sale of the boat. The tax due is 3% of the sales price of $2,000. The sales price includes the fee the retailer will retain from the sale.
Example 2. A North Carolina boat dealer is located in Wilmington, North Carolina. The boat dealer sells new boats, used boats, and provides brokerage services to individuals who wish to sell their used boats. For a commission or fee, the boat dealer will photograph, video, and market a seller’s boat on the boat dealer’s website. The boat dealer will also negotiate the sales price with potential buyers and collect the payment.
The boat dealer is engaged in business in the State because it is located in North Carolina. The boat dealer acts as a marketplace facilitator when it provides its brokerage services because it lists or makes available the boats for sell on its website and collects the payment. The boat dealer must collect and remit tax on its sales of boats including marketplace sales it facilitates.
Example 3. A Florida yacht builder agrees to represent the seller of a used yacht in exchange for a commission of 10% of the sales price of the yacht. Their brokerage services include listing the boat on their website and other sales platforms, facilitating sea trials, negotiating offers, and processing payment. The yacht builder does not have a physical presence in North Carolina. Last year, the yacht builder had sales sourced to North Carolina of $500,000.
The used yacht is sold to a North Carolina buyer for $250,000. The yacht seller processes the payment. The yacht builder delivers the yacht to the purchaser in Morehead City, NC.
The yacht builder is engaged in business in the State because its sales sourced to North Carolina last year exceeded $100,000. The yacht builder is a marketplace facilitator by listing the yacht for sale on its website and processing the payment for the yacht. The yacht builder must collect and remit to the Department the tax due of $1,500, the maximum tax due on the sale of the yacht.
Example 4. A North Carolina boat broker meets the definition of marketplace facilitator. The broker sells a boat from its lot in North Carolina to a customer in Virginia. The broker delivers the boat to the buyer’s home in Virginia by truck.
The broker is not required to collect and remit North Carolina sales tax on the sale because it delivers the boat to a customer in Virginia. The broker must keep acceptable records that it shipped and delivered the boat to Virginia.
Note: The boat broker should review Virginia law to determine if any sales or use tax is due in Virginia.
Example 5. A North Carolina boat broker agrees to market an individual’s yacht for sale for a fee. The broker agrees to purchase advertisements, list the boat on the broker’s website, and negotiate the sales price for the seller. However, the individual will collect the payment for the yacht from the buyer without any assistance or services from the broker.
The broker is not a marketplace facilitator in North Carolina because the individual will collect payment without any assistance from the broker. A marketplace facilitator must, directly or indirectly and whether through one or more affiliates, do one of the following:
- make payment processing services available to purchasers for the sale of a marketplace seller's items,
- collect the sales price or purchase price of the marketplace seller's items, or
- otherwise process payments.
Additional Resources
The Department’s Sales and Use Tax Bulletins (“SUTB”) provide additional information about marketplace facilitators, remote sellers, and the sale of boats. The information includes the following:
- SUTB 2-2 – Retailer's Obligation to Collect Tax; Remote Sales Subject to Tax;
- SUTB 15 – Boats and Related Items; and
- SUTB 59 – Marketplace Facilitators and Marketplace Sellers.
To the extent there is any change in the rate or amount of tax, change to a statute or regulation, or new case law subsequent to the date of this directive, the provisions in this directive may be superseded or voided. To the extent that any provisions in any other notice, directive, bulletin, or published guidance regarding the subject of this directive and issued prior to the date of this directive conflict with this directive, the provisions contained in this directive supersede the previous guidance.