Important Notice: Extended Compliance Period for Certain Remote Sellers
Issued By: Sales and Use Tax Division
Date: August 6, 2026
The following important information is addressed in this notice:
- Background
- Additional Time to Register & Begin Collecting Tax
- Effective Date
- Registration Requirements
- Examples
North Carolina requires a retailer that makes a remote sale1 (“Remote Seller”) to register, collect, and remit sales and use tax when it is engaged in business in the state. A Remote Seller is engaged in business if it meets any of the conditions found in G.S. §§ 105- 164.3(83) and 105-164.8(b).
The conditions include thresholds for determining whether a remote seller is engaged in business in the state. The thresholds are currently2 based on the gross sales sourced to the state (“Sales Thresholds”).
- 1
A remote sale is a “sale of an item ordered by mail, telephone, Internet, mobile phone application, or another method by a retailer who receives the order in another state and delivers the item or makes it accessible to a person in this state or causes the item to be delivered or made accessible to a person in this state or performs a service sourced to this state. It is presumed that a resident of this state who makes an order was in this state at the time the order was made.” G.S. § 105-164.3.
- 2
Session Law 2024-28, Section 2.1 repealed the prior transaction based thresholds effective July 1, 2024.
Effective July 2, 2026, a Remote Seller that solely exceeds the Sales Thresholds is allowed at least 60 days to register and begin collecting and remitting sales and use tax.3 The additional time only applies to Remote Sellers that exceed the Sales Thresholds but do not satisfy any of the other conditions in G.S. § 105-164.8(b).
As amended, a Remote Seller is considered engaged in business in North Carolina on the first day of the first calendar month that begins at least 60 days after the retailer exceeds the applicable threshold if the retailer is engaged in business solely because they exceed the Sales Thresholds.
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Session Law 2026-31, Section 3.1
This change became effective July 2, 2026. The change applies only to retailers that exceed the Sales Thresholds on or after that date.
Retailers that exceeded the Sales Thresholds before July 2, 2026, were subject to the law in effect at the time the Sales Threshold was exceeded.
Remote sellers and marketplace facilitators subject to North Carolina sales and use tax must register with the Department before engaging in business in the state. Registration may be completed through the Department’s online registration system or through the Streamlined Sales Tax Registration System.
Examples
Pencil Shop is a new retailer based in California. Pencil Shop’s only North Carolina activity is making remote sales of pencils. On July 5, 2026, Pencil Shop exceeds the Sales Threshold of $100,000 in gross sales sourced to North Carolina.
Pencil Shop becomes engaged in business on October 1, 2026. Pencil Shop exceeded the Sales Threshold on July 5, 2026, and was not otherwise engaged in business in the state. As a result, Pencil Shop became engaged in business on the first day of the first calendar month that is at least 60 days after July 5.
On or before October 1, 2026, Pencil Shop must register as a retailer with the Department. In addition, Pencil Shop must begin collecting and remitting sales and use tax to North Carolina on or before October 1, 2026.
Marketplace Store is a new marketplace facilitator based in Georgia. Marketplace Store makes marketplace sales and exceeds $100,000 in gross sales sourced to North Carolina on November 27, 2026. Marketplace Store does not have any other activity in North Carolina.
Marketplace Store becomes engaged in business on February 1, 2027. Marketplace Store exceeded the Sales Threshold on November 27, 2026, and was not otherwise engaged in business in the state. As a result, Marketplace Store became engaged in business on the first day of the first calendar month that is at least 60 days after November 27, 2026.
On or before February 1, 2027, Marketplace Store must register as a retailer with the Department. In addition, Marketplace Store must begin collecting and remitting sales and use tax to North Carolina on or before February 1, 2027.
Book Seller is a retailer. Book Seller opens a book warehouse in North Carolina on February 15, 2027, but only makes $50,000 in gross sales to North Carolina during 2027. On October 26, 2028, Book Seller exceeds $100,000 in gross sales sourced to North Carolina for the calendar year.
Book Seller becomes engaged in business in North Carolina on February 15, 2027. Book Seller is engaged in business because it maintains inventory in North Carolina. As a result, Book Seller is not allowed the 60-day period before it becomes engaged in business.
On or before February 15, 2027, Book Seller must register as a retailer with the Department. In addition, Marketplace Store must begin collecting and remitting sales and use tax to North Carolina on or before February 15, 2027.
Assistance
If you have questions about this notice, you may call the Department at 1-877-252-3052 (8:00 a.m. until 4:30 p.m. EST, Monday through Friday).
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 notice, the provisions in this important notice 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 notice and issued prior to the date of this notice conflict with this important notice, the provisions contained in this important notice supersede the previous guidance.