North Carolina – Tax Guidance for Vendors at the Democratic National Convention

SALT Report 1675 – The North Carolina Department of Revenue issued guidance for vendors participating in the upcoming Democratic National Convention in Charlotte.  North Carolina requires all vendors to collect and remit sales tax to the Department of Revenue. The tax must be stated and charged separately on any invoice given to the purchaser at the time of the sale except in the case of vending machine sales or in situations where the retailer indicates that the sales price includes the tax.
Registered Vendors

Vendors currently registered with the Department of Revenue should display a copy of their Certificate of Registration during the convention.  Registered vendors must report and pay the sales tax collected at the Convention on their return due October 2012.

Non-registered Vendors

All non-registered vendors must report the sales tax they collected during the convention on a Sales and Use Tax Return for Itinerant Merchants (Form E-557) by September 13, 2012.

Items Provided Free of Charge

Vendors that provide products free of charge during the convention may be liable for use tax on the purchase price of the products they give away.  N. C. Gen. Stat. § 105-164.6 imposes excise tax on property purchased, leased, or rented inside or outside the state for storage, use, or consumption in North Carolina.

Vendors that are registered for sales and use tax should remit the use tax on Form E-500, Sales and Use Tax Return, due October 2012.  Non-registered vendors must report and pay the use tax on Form E-557 and submit it by September 13, 2012.

Vendors that fail to remit sales and use tax will be contacted by the Department and assessed penalties and interest.

For Further Information:

North Carolina Department of Revenue – Vendors Participating in the 2012 Democratic National Convention Memo