Topic Thread

Sales Tax

  • 1.  Sales Tax

    Posted 06-08-2018 15:52

    We are a General Contractor starting out  in North Carolina and have question about Sales tax as it relates to Bids. As a general contractor, are we required to include sales tax for materials in our bid? Do we collect the tax and make quarterly tax payments to NCDOR? What is required of us and what should we include in our bids? Thanks, Mary

    Claris Construction



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  • 2.  RE: Sales Tax

    Posted 06-09-2018 01:36
      |   view attached
    It would depend on the type of construction your company will perform in the state. If capital improvements then services are not taxable and you would issue each sub a form E-585 to certify the project as a capital improvement (they established this in early 2017). The rest of the construction services are taxable. Material is always taxable and you would have to include the full price including the sales tax in the bid - same with the subs. If you are an out of state contractor and have material purchases shipped to site with no sales tax, then you would need to register to file sales tax and remit the use tax on those invoices to the state. You would also need to register with the state as a foreign corporation to do business in NC. No need to register for sales tax if you do capital improvements and require all material purchases to be taxed.
    Attached is their reference guide.

    Angel Goldman CCIFP, MBA
    Bartlett Brainard Eacott
    Bloomfield CT
    (860) 922-5009