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Some items are exempt from sales and use tax, including:Sales of certain food products for human consumption (many groceries)Sales to the U.S. Government.Sales of prescription medicine and certain medical devices.Sales of items paid for with food stamps.
Prescription Medicine, groceries, and gasoline are all tax-exempt. Some services in North Carolina are subject to sales tax.
Effective March 1, 2016 NC imposes the general 4.75 state rate of sales and use tax on repair, maintenance, and installation services sold at retail and sourced to the state. The applicable local (2% or 2.25%) and applicable transit (. 5%) rates of sales and use tax also apply.
Stat. § 105-164.4B . The retailer of a service contract is required to collect the tax at the time of the retail sale of the contract and is liable for payment of the tax.
When it comes to sales tax, the general rule of thumb has always been products are taxable, while services are non-taxable. Under that scenario, if your business sells coffee mugs, you should charge sales tax for those products.
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.
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.
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.
In order to have a valid contract in North Carolina, there must be an offer, an acceptance, along with consideration. The parties must also have the capacity to enter into the contract.
Prescription Medicine, groceries, and gasoline are all tax-exempt.