Anyone in NC that can help with sales tax? I have a person that sells online all over the country. I orginally told them to collect sales tax for his state and county on all sales. However, I'm rethinking because in NC you have to charge at the rate of the county the buyer is in and I know NC charges taxpayers uncollected use tax, so now I'm wondering if you only charge NC tax to NC buyers, but then NC DOR will probably want all his sales taxed????? HELP!!!
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Bump
I regret that I do not know the answer to your question. I'm sending it back up in case someone else does. Barring that, I think I would ask the NCDOR Sales Tax people this question. I think I would also ask for a citation and I would check out the citation to make sure it really says what you are being asked to believe it does.
I frankly think the answer is that out of state NC should be treated as in State in his county. Look at it this way - no State wants to see purchases without sales tax and on the other hand no one seriously thinks that a small outfit is going to remit taxes all over the country just because of internet or phone sales all over the country. But hey I'm looking at the situation logically and practically and the actual rules of taxation may in any given case be neither logical nor practical. -
OK this is where I am, in NC it's reported on the sales and use tax return but must put in box 3 for "exempt sales" if out state. Also, I'm finding when he files the E-500 he must do an E-536 to report tax in different counties, how is the web designer supposed to handle this?Comment
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Is your client located in NC?
That's the most important question to start with."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Yes, he's located in NCComment
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He will have to collect NC sales tax on any sale in NC, and it will have to be reported county-by-county, with the appropriate local sales tax rate applied (plus the additional "transportation tax" we get to pay in Mecklenburg County if he sells anything here). You can file & pay the NC sales tax reports online.
He can probably make sales to customers in other states without collecting sales tax in those states if he has no physical presence in those states. However, keep in mind that many states are going to great lengths to establish nexus and try to hold him responsible for collecting their sales tax because they know there's little likelihood of seeing the money through collection of use tax."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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