North Carolina Retail Internet Site Agreement
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FAQ
Cloud Computing Services are not subject to sales and use tax in North Carolina.
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 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.
North Carolina includes creative design charges as taxable.
Online businesses operating in North Carolina require the same licenses and permits that are required of businesses that operate out of a retail location.
Generally speaking, SaaS is not taxable North Carolina. However, some digital goods and services are taxable in the state, and the specific tax treatment of SaaS may vary depending on a number of different factors.
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.
Online educational content is exempt from North Carolina sales tax.
