General Sales and Use Tax

The general State and applicable local and transit rates of sales and use tax apply to the sales price of each item or article of tangible personal property that is sold at retail, sourced to this State, and is not subject to tax under another subdivision in N.C. Gen. Stat. § 105-164.4.  Tangible personal property is defined in N.C. Gen. Stat. § 105-164.3 as "personal property that may be seen, weighed, measured, felt, or touched or is in any manner perceptible to the senses.  The term includes electricity, water, gas, steam, and prewritten computer software."  The general sourcing principles are set forth in N.C. Gen. Stat. § 105-164.4B.

In those instances where the appropriate sales tax has not been paid on taxable tangible personal property, a use tax applies to the tangible personal property purchased or received from within or without this State for storage, use, or consumption in this State.

For a business or person who is not registered with the Department and is required to collect and/or remit the sales or use tax on the sales price of tangible personal property, register online using the online business registration portal.  Gross receipts derived from the sale of tangible personal property and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.

For additional information, refer to the main web page for sales and use tax