Computer software is a general term used to describe a collection of computer programs, procedures and documentation that perform some tasks on a computer system. Software is considered personal property and may be assigned.
North Carolina Assignment of Software
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FAQ
Services in North Carolina are generally not taxable, with important exceptions. If the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products. Some counties also consider a limited number of services (such as laundry and dry cleaning) taxable.
North Carolina is a destination-based sales tax state. So if you live in North Carolina, you collect sales tax at the rate of your buyer's location. You can look up North Carolina's local sales tax rates with TaxJar's Sales Tax Calculator, including those for counties such as Durham, Buncombe and Cabarrus.
Generally, a remote seller is required to collect and remit tax on all taxable remote sales sourced to North Carolina, including sales made online. The Internet Tax Freedom Act prohibits states from imposing a sales tax on Internet access services, but does not prohibit states from taxing sales made via the Internet.
North Carolina does apply sales tax to shipping costs. The rule of thumb is that if what you're selling is subject to tax, then the shipping charges are also subject to tax. (And vice versa is true: If the item being shipped is not subject to sales tax, neither are the shipping charges.)
North Carolina does not tax Internet access fees. In addition, use tax is not a multiple or discriminatory tax since it applies to all transactions (mail order, internet, out-of-state, home shopping) and taxes goods purchased outside the State in the same manner as goods purchased in the State.
Some goods are exempt from sales tax under North Carolina law. Examples include most non-prepared food items, food stamps, and medical supplies. We recommend businesses review the laws and rules put forth by the NCDOR to stay up to date on which goods are taxable and which are exempt, and under what conditions.