Tax & Accounting Blog

NC Getting Serious About Use Tax

Indirect Tax, Sales and Use Tax March 18, 2011

On Friday March 11th the North Carolina Department of Revenue issued a release reminding residents of their duty to pay use tax on otherwise taxable purchases where sales tax was not paid. Most often this occurs when an out of state retailer does not collect sales tax on a purchase by a NC individual or business. Out-of-state retailers that are not “engaged in business” in North Carolina can not be required to collect North Carolina’s tax. Although, some out-of-state retailers voluntarily collect North Carolina tax as a convenience to their customers this is generally not the case. The Release is available on the Department’s website at: http://www.dor.state.nc.us/taxes/sales/use.html