Online Filing and Payments

E-500, Sales and Use Tax Return

What is the E-500 and Why Should You Use It?

The Department's online filing and payment system allows you to electronically file Form E-500, Sales and Use Tax Return, and the accompanying schedule Form E-536, Schedule of County Sales and Use Taxes.  Monthly with Prepayment taxpayers are required to use the online filing and payment system. 

The Department does not mail the paper sales and use tax coupon booklets to users of the online filing and payment system. In addition, the Department will use email to deliver tax documents and tax information to all registered taxpayers that use the online filing and payment system.

Using this system allows us to process your return and/or payment more accurately and efficiently.  We strongly encourage you to use the online filing and payment system.

What Are the Benefits?
  • It is convenient – It's available 24 hours per day, 7 days a week with the exception of a scheduled maintenance period each Sunday from 4:00 am to 12:00 pm. If you are paying by bank draft, you can select a future draft date.
  • It is easy – For most tax types, the online screens are designed to look like the return.
  • It is accurate – Some of the online forms calculate the tax for you.
  • It is free – Paying by bank draft is free.
  • It is safe – The web site and the taxpayer’s data are secured with SSL (Secure Socket Layer) with at least 128-bit encryption.
  • It is acknowledged – You will receive an acknowledgement from the Department that your return and payment have been received.

Do I Need to Register to E-File My Sales and Use Tax Return?

Advanced registration is not required when filing online by selecting the "File E-500 and pay online" option within the E-500 Sales and Use E-File web service.  This option allows you to file online and pay by Bank Draft, Visa, or MasterCard.

Registration is required when filing online by uploading an Electronic Data Interchange (EDI) formatted return.  To register, you must complete Form NC-592, Sales and Use Tax Electronic Data Interchange (EDI) Registration. For more information about EDI including a list of approved software vendors, click here.  This option allows you to file by EDI and pay by Bank Draft, Visa, MasterCard, or EFT.  Note:  A separate registration is required to pay by EFT.  For additional information regarding registering for EFT, click here.

Registration is required when filing online by selecting the "File E-500 and pay by Electronic Funds Transfer (EFT) or by Core Banking System (CB$)" option within the E-500 Sales and Use E-File web service.  To register to pay by EFT (ACH Credit or ACH Debit) you must complete the appropriate Payment Method Authorization Agreement form.  For more information about registering for EFT, click here.

North Carolina State Agencies, institutions within the UNC System, North Carolina Community Colleges and Local School Boards that have funds on deposit with the North Carolina State Treasurer are required to remit their Sales & Use payments electronically to DOR through the State Treasurer's Core Banking system. The agency must first get set-up in the Core Banking system by contacting the State Treasurer's Core Banking Help Desk. These Core Banking users may now file their E-500 return online by selecting the "File E-500 and pay by Electronic Funds Transfer (EFT) or by Core Banking System (CB$)" option.

How Do I Enter the Return and Payment Information?

If you file on a monthly or quarterly basis, you must enter the return and payment information directly into the online filing and payment system.
If you are a quarterly, monthly or monthly with prepayment taxpayer, you can enter the return information directly into the online filing and payment system or upload an EDI formatted return.  North Carolina approved software must be used to place the return into the correct EDI format.  For more information about EDI including a list of approved software vendors, click here.  Payment information cannot be included in the EDI formatted return and must be entered directly into the online filing and payment system. 

Am I Required to Mail Any Paper Documentation After Submitting My Return?

If you have claimed a credit on Form E-500, you are required to mail documentation in support of the credit.  Mail the supporting documentation, along with Form E-RA, Required Attachments for Sales and Use Tax Electronic Filing, to:

North Carolina Department of Revenue
PO Box 25000
Raleigh, NC 27640-0001

Note: Include your account number and the period for which you are claiming the credit on your correspondence.

Can I File a Balance Due Return and Send the Payment in By Mail?

No, you must submit payment of the tax at the time of filing. The online filing and payment system will prompt you to enter your banking information or credit/debit card information for payment of the tax depending on whether you choose to pay by bank draft or by credit or debit card.

What Are the Online Payment Choices?
  • Credit/Debit Card (MasterCard/Visa)
  • Bank Draft

Electronic payments may also be submitted by Electronic Funds Transfer (EFT) ACH Credit or ACH Debit. To register to pay by EFT (ACH Credit or ACH Debit) you must complete the appropriate Payment Method Authorization Agreement form. For more information about registering for EFT, click here.

North Carolina State Agencies, institutions within the UNC System, North Carolina Community Colleges and Local School Boards that have funds on deposit with the State Treasurer are required to remit their Sales & Use payments electronically to DOR through the State Treasurer's Core Banking system. The agency must first get set-up in the Core Banking system by contacting the State Treasurer's Core Banking Help Desk at 919-508-5914.

Is There a Fee?

Payments can be made online by bank draft and credit or debit card using MasterCard or Visa.  There is no fee for choosing the bank draft method.  There is a convenience fee for choosing to remit by credit/debit card.  The fee is calculated as $2.00 for every $100.00 increment of your tax payment.

Example of fee calculation:
$2.00 for payment amounts of $.01 to $100.00
$4.00 for payment amounts of $100.01 to $200.00
$6.00 for payment amounts of $200.01 to $300.00

What Information Do I Need to Submit My Payment?
  • Your Sales Account ID Number
  • Your FID Number or Social Security Number
  • Your Email Address
  • Your Telephone Number
  • Your Credit/Debit Card or Bank Account Information
What Information Do I Need to Make a Credit/Debit Card Payment?
  • Credit/Debit Card Number
  • Expiration Date
  • Your Zip Code as it appears on your Credit/Debit Card Statement
What Information Do I Need to Make a Payment Via Bank Draft?
  • Bank Account Number
  • Bank Routing Number
  • Account Type (checking or savings)
  • Amount of Payment
  • Date you want to make the payment
What is a Debit Block and How Can it be Removed?

Some financial institutions offer a "Debit Block" service for some banking accounts. A Debit Block is a restriction placed on a bank account to prevent unauthorized debits to the account. A debit block must be removed before an ACH Debit transaction can occur successfully. If you are unsure if your bank account has a debit block, contact your financial institution for more information.

For ACH Debit (Online Payments), you may also provide your bank with the North Carolina Department of Revenue Company ID -1561611838. This number allows the bank to identify the NC Department of Revenue as an acceptable party to debit the account and bypass a debit block.

How Do I Submit My Payment?

You will be prompted through a series of screens that will require you to complete a payment application and furnish credit/debit card or bank draft account information. You will be provided a confirmation page that you should print and save for your records that will contain a confirmation number.

Important Note: If you submit a payment but you do not receive a confirmation page with a confirmation number, please contact the Electronic Services Help Line at 1-877-308-9103 so that an agent can assist you in determining if your transaction was successfully submitted.

What If I Change My Mind After I Have Completed the Credit/Debit Card Transaction?

If you make a payment by credit/debit card and later decide to reverse the transaction, you may be subject to penalties, interest or other fees imposed by the Department of Revenue for nonpayment or late payment of tax.

What If I Change My Mind After I Have Completed the Bank Draft Transaction?

If you make a payment by bank draft and later decide to reverse the transaction, you will need to contact your bank to cancel the transaction.  However, you may be subject to penalties, interest or other fees imposed by the Department of Revenue for nonpayment or late payment of tax.

When Will My Payment Be Effective?

All transactions submitted prior to 5:30 pm EST will be effective the following banking day.

How Will I Know the Department Has Received My Payment?

After you have entered your payment information, reviewed the information you have entered and selected Submit, you will receive a confirmation page with a confirmation number to let you know that your information has been successfully submitted.                   

You will receive an email from the Department within two business days from submission of your payment information. The email will contain the same confirmation number that is displayed on the confirmation page that you print for your records. This email will also contain a Document Locator Number. You should retain the email for your records and you should provide these numbers if you contact the Department for assistance with the payment.

Please contact the Electronic Services Help Line at 1-877-308-9103 if you do not receive a confirmation page or if you do not receive an email acknowledgment so that an agent can assist you in determining if your transaction was successfully submitted.

Is My Information Safe?

Safety measures are in place to protect your information.  No one can read your tax information while it is being electronically filed.  The web site and your data are secured with SSL (Secure Socket Layer) with at least 128-bit encryption.

Are There Hardware and Software Requirements?

The following operating systems and browsers are supported for filing and paying online:

Operating Systems:
Windows 98/XP/NT/2000

Browser:
Internet Explorer 6.0 or higher with at least 128-bit encryption
Firefox 3.0 or higher with at least 128-bit encryption

Note:
The web browser must be configured to enable “per session cookies.” In Internet Explorer, this can be set under the “Internet Options” menu option. For additional information on enabling the “per session cookies,” please check the browser’s documents/help. If you receive a message that 128-bit encryption is needed, you will need to download the 128-bit encryption for your browser. The 128-bit encryption is standard in the United States so the problem would normally apply to someone trying to access the application from outside the United States.

Who Can I Contact for Assistance?

For additional assistance, contact the Electronic Services Help Line Monday through Friday between the hours of 8:00 am and 5:00 pm EST at 1-877-308-9103.


File and/or pay E-500