Not for Profit and NC Sales and Use Tax Clarifications, by Sherri Rose, Nonprofit Auditor

Recently, I overheard a board member of a North Carolina nonprofit state they did not have to charge sales tax because they are exempt. Nonprofit auditors will tell you, this is simply not true. Just because an organization is not-for-profit does not exempt them from paying or collecting sales and use tax. North Carolina law provides for no such exemption. Nonprofit organizations are required by North Carolina law to pay sales tax for items they purchase to use in the organization. The only time they may be exempt from paying sales tax is when they are buying goods for resale. Once sold, however, they are required to collect and remit the sales tax to the NC Department of Revenue. To ob

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