Sales and Use Tax Frequently Asked Questions
Registration for Sales and Use Tax
You must register with the Department to obtain a sales and use tax Certificate of Registration. You can register online using the online business registration portal or submit a completed Form NC-BR or other appropriate registration application by mail. You may request a registration application online, by mail, or by contacting the Department at 1-877-252-3052 (toll free).
In addition, North Carolina is a member of the Streamlined Sales Tax® Governing Board. As a result, you may register through Streamlined Sales Tax® Registration System.
After your registration is approved, you will be mailed a Certificate of Registration and other information about your account.
Sales Certificates of Registration cannot be obtained over the telephone.
Most applicants registering using the online business registration portal will receive their account number instantly and a Certificate of Registration will be mailed within ten business days. If the registration is not filed electronically, it may take up to four weeks.
Most taxpayers file sales and use tax returns electronically As a result, new sales and use tax registrants are not automatically mailed returns.
If you would like to file paper returns, you may request a coupon booklet with preprinted returns by calling the Department at 1-877-252-3052 (toll free). In addition, web-fill paper returns are available.
Note: Monthly with prepayment sales and use tax registrants are required to file Form E-500, Sales and Use Tax Return, electronically and make payments electronically.
No. There is no fee charged for a Certificate of Registration.
No. You must complete and submit Form NC-AC, Business Address Correction. You can now complete the form online.
A retailer who engages in business for six or fewer months in each year must indicate the months in which they engage in business when registering in order to register as a seasonal filer. 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.
Filing Sales and Use Tax Returns
For most taxpayers, you may file online or by mail. If payment is made by Electronic Funds Transfer (EFT), a paper return is still required to be submitted to complete the filing.
Note: Monthly with prepayment filers are required to file their returns and pay electronically.
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.
You may file online or obtain the form online, by mail, or by contacting the Department at 1-877-252-3052. Do not use old forms or a form with a different filing period. Using incorrect forms will create errors and delays in the processing of returns. You may order replacement forms by contacting the Department at 1-877-252-3052.
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.
North Carolina Department of Revenue
Post Office Box 25000
Raleigh, North Carolina 27640-0700
Online Filing for Sales and Use Tax
Yes - You may file and pay online.
Filing Frequency and Due Dates
The Department assigns your filing frequency based on your tax liability. Your initial filing frequency is based on your registration. After your initial registration, the Department will notify you of any changes by mail. Generally, filing frequencies are assigned as follows:
- Monthly: Tax liability consistently more than $100 but less than $20,000 per month. Returns and payments are due on or before the 20th day of each month for all taxes due for the preceding calendar month.
- Quarterly: Tax liability consistently less than $100 per month. Returns and payments are due on or before the last day of the month for all taxes due for the preceding calendar quarter.
- Monthly with Prepayment: Tax liability is at least $20,000 a month. Returns and payments are due 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. Monthly with prepayment returns and payments are required to be made electronically.
If you do not know your filing frequency, you may contact the Department at 1-877-308-9103. For additional information refer to the Filing Frequency and Due Dates webpage.
The return and payment is considered timely if you file on the business day following the Saturday, Sunday, or a legal holiday.
Refer to Directive TA-18-1 for further details about timely filing of returns and payments.
Business Requirements
It depends. Refer to the Sales and Use Tax Rates webpage for information about sales and use tax rates.
A person who engages exclusively in the business of making wholesale sales is not required to file a return but is required to obtain a certificate of registration before the person engages in business in the state except as noted below. 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. A wholesale merchant is required to maintain records that include a bill of sale for each customer that contains the name and address of the purchaser, the date of the purchase, the item purchased, and the price at which the wholesale merchant sold the item. A wholesale merchant must obtain a certificate of exemption or the required data elements to substantiate that it is a wholesale sale to a customer. Failure of a wholesale merchant to keep these records for the sale of an item subjects the wholesale merchant to liability for tax at the rate that applies to the retail sale of the item.
A retailer who engages in business for six or fewer months in each year must indicate the months in which they engage in business when registering in order to register as a seasonal filer. 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.
The corporation must apply for a new Certificate of Registration. In addition, the proprietorship or partnership must close the obsolete sales tax registration.
No. In most cases, a new owner must obtain a new Certificate of Registration.
Complete and submit the Out-of-Business Notification, Form NC-BN. You can now complete the form online.
Yes. A Certificate of Registration 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 accounts that become void. If your account is cancelled for this purpose, you will be notified by mail and given an opportunity to reactivate your account.
Yes. Flea market vendors must obtain a Certificate of Registration and it must be posted at their location. Refer to the Specialty Markets or Other Events Overview webpage for additional information.
Yes. Currently, the services subject to tax include:
No. Lottery ticket sales are not subject to sales or use tax. You must keep records that show your sales of lottery tickets. In addition, you should include these sales 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.
Penalties and Interest
Yes. A failure to file penalty of 5% per month or fraction thereof with a maximum of 25% will be due.
Yes. A failure to pay penalty of 5% will be due. In addition, interest is due on the amount of tax due from the date the tax was due until it is paid.
Name Change Information
For information on how to change your name with Department, please review the information on our name change page.