If you’re a business owner in the state of North Carolina, then you’ll need to be aware of the sales tax exemption certificate–more commonly known as a “resale certificate.” This document allows businesses to purchase goods and services without paying sales tax, which can be a major savings for your company. In order to qualify for a resale certificate, your business must meet certain requirements:
-The threshold for nexus in North Carolina is $100,000 in sales or 200 transactions.
-If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not to charge any sales tax, and the liability of sales tax lies with the re-seller based on value of final sale; then no sales tax is charged.
There are two ways that a reseller’s certificate can be shared by the reseller: submitting an existing reseller certificate to the business or creating a reseller’s certificate on third-party platforms such as Avalara Tax-exempt etc. Whichever way you choose, it’s important that you ensure that your certificate is valid.
North Carolina – https://eservices.dor.nc.gov/ncbusreg/
Sales tax rate – 4.750%
Information required to register for a sales tax permit in the state of North Carolina
1) Your Social Security Number (SSN) or Federal Employer Identification Number (FEIN), and North Carolina Secretary of State Number (SOS), if applicable.
2) Your business name, address, phone number.
3) Partner or Responsible Person, if applicable (name, title, SSN, address).
4) Details about your business (begin date, type of business, etc.).
Certain purchases and rentals can be made without the need to pay sales tax. Some examples are nails, fabric, and wood incorporated into a chair; items which will be rented out as real property or tangible personal property; and services that will be resold.
In order to make a purchase or rental that falls under this category, you must have a resale sales tax exemption certificate. It is necessary to have this document in order to rent or purchase such a property.
There are 2 ways of sharing a reseller’s certificate by the reseller, this can be achieved, either through submitting an existing reseller certificate to the business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc.
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
North Carolina is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the 50 United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and South Carolina to the south, and Tennessee to the west. Raleigh is the state’s capital and Charlotte is its largest city. The Charlotte metropolitan area, with an estimated population of 2,569,213 in 2018, is the most-populous metropolitan area in North Carolina, the 23rd-most populous in the United States, and the largest banking center in the nation after New York City. The Raleigh-Durham-Cary combined statistical area is the second-largest metropolitan area in the state, with an estimated population of 2,079,687 in 2019, and is home to the largest research park in the United States, Research Triangle Park.
The earliest evidence of human occupation in North Carolina dates back 10,000 years, found at the Hardaway Site. North Carolina was inhabited by Carolina Algonquian, Iroquoian, and Siouan speaking tribes of Native Americans prior to the arrival of Europeans. North Carolina was established as a royal colony in 1729 and was one of the Thirteen Colonies. North Carolina is named in honor of King Charles I of England who first formed the English colony, Carolus being Latin for “Charles”. In 1755 colonial North Carolina received its first postmaster, James Davis, appointed by Benjamin Franklin. The Halifax Resolves resolution adopted by North Carolina on April 12, 1776, was the first formal call for independence from Great Britain among the American Colonies during the American Revolution.Source