Get the free Sales and Use Tax Important Notice regarding Form E-589J Affidavit

Sales and Use Tax Division North Carolina Department of Revenue Post Office Box 25000 Raleigh, North Carolina 276400001 www.dornc.com IMPORTANT NOTICE: FORM E589J AFFIDAVIT TO EXEMPT CERTAIN QUALIFYING

How to fill out sales and use tax

How to fill out sales and use tax:

1. Gather all necessary documents: Before filling out the sales and use tax form, make sure you have all the relevant information and documents required. This may include sales records, inventory records, purchase receipts, and exemption certificates.
2. Understand the tax rates and jurisdictions: Different states and local jurisdictions have varying sales tax rates and rules. It is important to understand the applicable tax rates and the jurisdictions where you are required to collect and remit the tax. You can find this information on the website of the taxation authority or consult a tax professional.
3. Calculate taxable sales: Determine the total amount of sales that are subject to sales tax. This usually includes sales of tangible goods, certain services, and rentals. Make sure to exclude any tax-exempt sales or sales made to tax-exempt entities.
4. Determine the tax owed: Multiply the taxable sales by the applicable tax rate to calculate the amount of tax owed. Some jurisdictions may have different tax rates for different types of goods or services, so it is important to apply the correct rate for each transaction.
5. Report the tax collected: Enter the calculated tax amount on the sales and use tax form in the appropriate section. Be sure to accurately report the collected tax amount to ensure compliance with tax regulations.
6. Keep records and file on time: It is essential to maintain proper records of your sales and use tax transactions. Keep copies of all relevant documents and forms in case of an audit. Additionally, make sure to file your sales and use tax return on time to avoid penalties or late fees.

Who needs sales and use tax:

1. Businesses selling tangible goods: Any business engaged in selling tangible goods, such as retail stores, wholesalers, and manufacturers, generally needs to collect and remit sales and use tax. This ensures that the appropriate tax is paid on goods sold within the jurisdiction.
2. Service providers subject to tax: Some states or local jurisdictions may require service providers, such as contractors, repair technicians, or consultants, to collect and remit sales and use tax on certain taxable services provided.
3. Online sellers: With the growth of e-commerce, many states now require online sellers to collect and remit sales tax on sales made to customers within their jurisdiction. This includes businesses selling goods through their own websites or third-party platforms like Amazon or eBay.
4. Non-profit organizations: While non-profit organizations are generally exempt from paying sales tax on purchases they make, they may still be required to collect and remit sales and use tax on taxable sales made by the organization. This could include fundraising events, merchandise sales, or any other taxable activities conducted by the non-profit.
5. Individuals making significant purchases: In some states, individuals who make large purchases, such as cars, boats, or expensive items, may be required to pay sales and use tax directly to the jurisdiction. This ensures that the appropriate tax is paid on high-value purchases made within the state.

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What is sales and use tax?

Sales tax is a tax on retail sales of tangible personal property and certain services. Use tax is a tax on the use of tangible personal property and taxable services in a state, including purchases from out-of-state vendors.

Who is required to file sales and use tax?

Businesses that sell tangible personal property or taxable services are generally required to file sales and use tax returns.

How to fill out sales and use tax?

To fill out sales and use tax, businesses need to collect information on their sales and use tax transactions, calculate the amount of tax owed, and then file a return with the appropriate tax authorities.

What is the purpose of sales and use tax?

The purpose of sales and use tax is to generate revenue for state and local governments to fund public services and infrastructure.

What information must be reported on sales and use tax?

Businesses must report their total sales and purchases subject to tax, the amount of tax collected or paid, exemptions claimed, and any other required information on their sales and use tax returns.