The state of North Carolina requires all individuals and companies who sell product at a physical location within the state at any time to collect and pay sales tax to the state, county, and municipality where the product is sold. There are a few exceptions to this rule: a crafts person who has paid sales tax when purchasing supplies for their craft usually is not required to collect and pay sales tax (please contact your tax professional to determine if this applies to your situation).

North Carolina processes all Sales Tax forms online. For most vendors, it will not be necessary to open an account with the state, but the Sales Tax Returns will need to be filled out on the online .pdf forms and printed out for submission (please remember, NC forms cannot be saved to your computer – be sure to print a copy for your records).

Applying for a NC Sales and Use Tax Number

The first step to collecting and paying Sales Tax is to apply for a NC Sales and Use Tax Number. To submit a paper form, use form NC-BR located a:

http://www.dor.state.nc.us/downloads/fillin/NCBR_webfill.pdf

Sections I, III, and V are required for sales tax. Please note in section III that you can indicate which months sales tax is paid – Animazement is always in May! Indicating specific months may reduce paperwork.

To apply online, go to:

http://www.dor.state.nc.us/downloads/sales.html

Scroll down to NC-BR and click the link "register online."

Open a Sales and Use Tax Account

For vendors who choose to open a Sales and Use Tax account for reporting and paying sales tax online, go to:

http://www.dor.state.nc.us/electronic/salesanduse.html

For vendors who choose to pay sales tax after Animazement as a seasonal paper filer, forms E-500 and E-536 are located at:

http://www.dor.state.nc.us/downloads/sales.html

The state sales tax rate is 5.75%, the county tax rate is 2% (7.75% total). The county to list on form E-536 is Wake.

Please consult your tax professional for assistance in calculating and reporting sales tax.

Vendors with questions are encouraged to contact their tax professionals and/or the North Carolina Department of Revenue directly.

N.C. Department of Revenue
P.O. Box 25000
Raleigh, NC 27640
Phone: (919) 733-3661
Fax: (919) 715-2999
http://www.dor.state.nc.us/taxes/sales/

Animazement's accountant will be available during the convention to answer questions.