Are remote sellers required to collect sales and use tax on sales made via the Internet?

Yes. Effective November 1, 2018 all remote sellers having gross sales in excess of $100,000 sourced to North Carolina or 200 or more separate transactions sourced to North Carolina in the previous or current calendar year (collectively "Threshold") must register to collect and remit sales and use tax to North Carolina. Remote sellers may voluntarily begin collecting and remitting sales and use tax any time prior to November 1, 2018.

The Internet Tax Freedom Act prohibits North Carolina from imposing a sales tax on Internet access services, but does not prohibit North Carolina from taxing sales made via the Internet.

Show All Answers

1. What is the total Orange County Sales Tax rate?
2. Is Food Exempt from Sales Tax?
3. Are there separate State and County distribution methodologies?
4. Are remote sellers required to collect sales and use tax on sales made via the Internet?
5. Who is considered a remote seller?
6. When making a sale, does the merchant collect tax for the state that you are located in or the state where the customer is located?
7. How do merchants determine where the sale occurred?
8. Is this a new tax?
9. What is Nexus in North Carolina?