Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for North Carolina.
February 18, 2025
North Carolina – Subscription Fees for Digital Products Taxable
Authored by: Courtney Easterday, MSA and Ryan Schupp
On November 1, 2024, the North Carolina Department of Revenue released a private letter ruling on a taxpayer’s subscription fees to access digital videos, books, and audiobooks. The taxpayer delivers these products through software and databases. The Department noted these products are accessed through the software and databases, but the customer’s subscription fee is for accessing the digital products. These transactions were found to be a bundled transaction of both software and digital products and, therefore, would constitute a taxable transaction.
If you have questions about the taxability of digital goods and services, please contact a member of the Withum SALT Team.
July 23, 2024
North Carolina Eliminates 200 Transaction Threshold From Economic Nexus Statute
Authored by: Courtney Easterday, MSA and Jessie Racioppi
On July 1, 2024, North Carolina Governor Cooper signed HB 222 eliminating the 200-transaction sales tax nexus threshold effective July 1, 2024. North Carolina requires remote retailers and marketplace facilitators to collect and remit sales and use tax if the annual North Carolina sourced gross receipts exceed $100,000, regardless of the number of transactions. Retailers and marketplace facilitators with less than $100,000 of North Carolina sales were required to register because they had more than 200 North Carolina transactions and were no longer required to collect and remit North Carolina sales tax. North Carolina Department of Revenue advises that remote sellers that meet the following criteria should consider closing their North Carolina sales and use tax account:
- Less than $100,000 of gross sales sourced to North Carolina in 2023;
- Less than $100,000 of gross sales source to North Carolina in 2024 from January 1 through the registration cancellation date; and
- Is not engaged in any other business activity in North Carolina.
For more information, on HB 228, please refer to the Department’s July 1, 2024 Directive: SD-24-1 – Remote Sales – Repeal of Transaction Thresholds.
If you have questions about the sales tax nexus, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
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