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The NC Department of Revenue says that if you are selling anything at retail (and thus collecting sales tax thereon), and you provide repair, maintenance, or installation services with respect to that item sold at retail, you are a retailer and will collect sales tax on labor.
Optional maintenance contracts provide prepaid coverage for maintaining a vehicle. These contracts include taxable items and nontaxable repair labor for one price. Examples include: Oil changes.
In the state of North Carolina, only computer software which meets certain descriptions is considered to be exempt. Sales of custom software - delivered on tangible media are exempt from the sales tax in North Carolina. Sales of custom software - downloaded are exempt from the sales tax in North Carolina.
North Carolina generally does not require sales tax on Software-as-a-Service.
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.
Yes. Retail sales tax applies to a service contract or warranty sold to a consumer (WAC 458-20-257).
Effective March 1, 2016, N.C. imposes a sales tax on repair, maintenance, and installation services. Optional computer software maintenance contracts with respect to prewritten software that only provide support services that meet the definition of repair, maintenance, and installation services are fully taxable,
The North Carolina Department of Revenue issued a private letter ruling, concluding that subscription fees for a Software as a Service (SaaS) product are non-taxable.
The sales price of or the gross receipts derived from repair, maintenance, and installation services sold at retail is subject to the general State and applicable local and transit rates of sales and use tax. Repair, maintenance, and installation services is defined in N.C. Gen.
Effective March 1, 2016, N.C. imposes a sales tax on repair, maintenance, and installation services. Optional computer software maintenance contracts with respect to prewritten software that only provide support services that meet the definition of repair, maintenance, and installation services are fully taxable,