North Carolina has updated its Streamlined Sales and Use Tax Agreement Certificate of Exemption form, Form E-595E, to reflect changes adopted as part of the Streamlined Sales and Use Project. Form E-595E is to be used for purchases for resale or other exempt purchases.  The revision of the form is applicable to transactions beginning January 1, 2018. However, changes to the form under “5. Reason for exemption” are not applicable to transactions otherwise subject to the state local, and transit sales and use taxes.

In accordance with N.C. Gen. Stat. § 105-164.28(e) a seller is not required to renew a blanket certificate of exemption or to update exemption certificate information or data elements when there is a recurring business relationship between the purchase and seller. A seller may consider a recurring business relationship exists when a period of no more than 12 months elapses between sales transactions. If a recurring business relationship is not established, a seller should obtain a newly completed Form E-595E from a purchaser for a sales transaction on or after the date of department’s issuance of the related notice, or within 90 days of the sale, as applicable, in accordance with N.C. Gen. Stat. § 105-164.28.

If you are retailer conducting business in North Carolina, this could potentially affect you. It is important that you take notice to whether or not you may be required to obtain a new exemption certificate from particular purchasers. A qualified tax attorney can assist with any potential questions or concerns that may arise.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is an executive council member of the American Bar Association Tax Section State and Local Tax Committee and the Florida Bar Tax Section. Ms. Moffa is an author of both the CCH’s Expert Treatise Library: Sales and Use Tax as well the ABA’s Sales and Use Tax Deskbook. In addition, her regular columns on state and local tax issues can be found in State Tax Notes and Actionline, a publication from the Florida Bar’s Real Property, Probate, and Trust Law Section. She also serves as assistant editor to the Sales and Use Tax Deskbook and Actionline. Ms. Moffa is a regular speaker at the American Bar Association Tax Section conferences, the Institute of Professionals in Taxation, the Florida Bar Tax Section, the Florida Bar Real Property, Probate, and Trust Law Section, and the FICPA. In her free time, she teaches as an adjunct professor at Broward College.

Posted in Multi-state sales and use tax, North Carolina Sales Tax