If you have questions about the certificate, you can check the questions frequently asked by the North Carolina Department of Sales and Use of Sales and Use Tax or the Taxpayer Assistance and Collection Center at 1-877-252-3052 (no charge). If you wish to apply for a turnover exemption or use the tax on your purchases, contact the state in which you are applying for the exemption. If the seller does not collect or transfer the VAT due, the customer must transfer the tax directly to the state, unless the customer can apply for a valid exemption. If the sender receives a fully completed exemption certificate from the seller, the sender of the drop is not responsible for VAT on products provided by the dump sender to the seller`s customer in an optimized Member State. For information about the exceptions or tax authorities of a given state, please contact that state. Sellers registered by the VAT Optimized Registration System (SSTRS) are required to collect and transfer VAT to each state where they are registered if the product sold is purchased in that state. If the seller`s customer provides a certificate of exemption to the seller, the seller should not collect sales or VAT on that transaction. A Drop Shipper is required to collect and transfer VAT, except in the event of an exemption. Do you have any questions or things to say? Start the conversation in the comments! Don`t you want to track the vat yourself? Let TaxJar automate it for you! Did you know that you can avoid paying most of VAT by purchasing retail products for resale? Be sure to represent any certificates received by your company for audit purposes.
The good news is that North Carolina does not have a “hooked” seller if the resale certificate is fraudulent, provided the certificate is complete and you have accepted it in good faith. Nevertheless, you can still verify the validity of an online resale certificate by checking the information from our blog post How to verify a resale certificate in each state. You will find other documents attesting that the state accepts the use of your exemption or resale number in the state`s certificate of compliance. To view the direct delivery criteria, click on the status to open the certificate. Scroll through the #317080 section. Here are the basics of how you can obtain, complete and use this certificate and what you can do if you received one. Do not send exemption certificates to the Streamlined Sales Tax Board or to the states. Buyers must provide their supplier with the completed exemption certificate and keep a copy for their registrations.
If a drop shipper delivers a product to the seller`s customer in an optimized full Member State, the seller can use the seller`s seller`s vat registration number on the exemption certificate made available to the Drop Shipper. The seller is not required to provide a VAT registration number from the state where the sale is purchased when purchasing products for resale. A seller may issue drop Shipper with an exception certificate that would resell the resale if the Drop Shipper provides products that the seller has sold to the seller`s customer. If you are not yet registered for your North Carolina sales license, you will find instructions on our blog post “How to Register for a North Carolina Sales Tax Permit.” (Note that once registered for VAT approval, you must collect and transfer VAT on taxable sales in North Carolina). Do I need to receive and keep paper copies of exemption certificates from my clients? North Carolina has a fairly simple process for using a resale certificate. First, you must be registered for your VAT authorization in North Carolina (remember that you must withdraw VAT from your customers in North Carolina).