According to N.C. Gen. Stat. § 105-164.28 (e) a seller is not required to renew a lump sum exemption certificate or update exemption certificate information or data elements where there is a recurring business relationship between buyer and seller. A seller may consider that there is a recurring business relationship when a period not exceeding twelve months has elapsed between the sales transactions. In the absence of a recurring business relationship, a seller must provide the buyer with a newly completed Form E-595E for a sales transaction on or after the date of issuance of the corresponding communication by the department or, where applicable, within 90 days of the sale in accordance with the N.C gene. Stat. § 105-164.28. North Carolina has updated its Certificate of Exemption Form for Online Sales and Use Agreements, Form E-595E, to reflect changes to the Streamlined Sales and Use Project.
Form E-595E is used for resale purchases or other exempt purchases. The revision of the form will apply to transactions that begin on January 1, 2018. The changes to the « 5th Reason for Exemption » form do not apply to transactions that are otherwise subject to local state and transit taxes on sale and use. If you`re a retailer doing business in North Carolina, this could have an impact on you. It is important that you keep in mind whether or not you may need to obtain a new exemption certificate from certain buyers. A qualified tax lawyer can help with questions or concerns….