Are You Aware of Your Sales Tax Obligations as an Auctioneer in NC?

FAQs for Auctioneers on Sales and Use Tax Collection in North Carolina

• As of February 1, 2020, an auctioneer meeting the definition of a marketplace facilitator is liable for collecting and remitting sales and use tax on taxable marketplace-facilitated sales.
• The liability applies when the auctioneer lists or makes available for sale a marketplace seller's items through a marketplace owned or operated by the facilitator and collects the sales price or processes payment.
• The marketplace facilitator is responsible for collecting and remitting sales tax when their sales meet the threshold of either gross sales in excess of $100,000 or 200 or more separate transactions sourced to North Carolina.
• An auctioneer that is a marketplace facilitator is not obligated to collect and remit sales and use tax on its marketplace facilitated sales made prior to meeting the threshold.
• An auctioneer that only calls bids and does not conduct other activities at an event is not a marketplace facilitator and is not required to collect and remit sales and use tax.
• Auctioneers and tag sale operators who sell new or used household possessions, equipment, and tangible personal property at estate sales or auctions in North Carolina are liable for collecting and remitting sales and use tax on such transactions.
• The location of the sale, whether at the property owner’s home or farm, does not affect the auctioneer’s tax obligations.
• Auctioneers are not required to collect and remit sales and use tax on sales of real estate or motor vehicles in North Carolina.
• A list of general sales and use tax exemptions and sales and use tax exemptions for farmers can be found in N.C. Gen. Stat. § 105-164.13 and § 105-164.13E, respectively.
• Properly completed Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption, must include the purchaser’s name, address, certificate of registration number, reason for exemption, and type of business.
• Auctioneers, tag sale operators, and other marketplace facilitators can register for North Carolina sales and use tax via the Department’s online business registration portal or by submitting a completed Form NC-BR.
• Retailers are required to file a Sales and Use Tax Return on a quarterly, monthly, or monthly with prepayment basis depending on the retailer’s total monthly sales and use tax liability.

FAQs for Auctioneers on Sales and Use Tax Collection in North Carolina

• As of February 1, 2020, an auctioneer meeting the definition of a marketplace facilitator is liable for collecting and remitting sales and use tax on taxable marketplace-facilitated sales.
• The liability applies when the auctioneer lists or makes available for sale a marketplace seller's items through a marketplace owned or operated by the facilitator and collects the sales price or processes payment.
• The marketplace facilitator is responsible for collecting and remitting sales tax when their sales meet the threshold of either gross sales in excess of $100,000 or 200 or more separate transactions sourced to North Carolina.
• An auctioneer that is a marketplace facilitator is not obligated to collect and remit sales and use tax on its marketplace facilitated sales made prior to meeting the threshold.
• An auctioneer that only calls bids and does not conduct other activities at an event is not a marketplace facilitator and is not required to collect and remit sales and use tax.
• Auctioneers and tag sale operators who sell new or used household possessions, equipment, and tangible personal property at estate sales or auctions in North Carolina are liable for collecting and remitting sales and use tax on such transactions.
• The location of the sale, whether at the property owner’s home or farm, does not affect the auctioneer’s tax obligations.
• Auctioneers are not required to collect and remit sales and use tax on sales of real estate or motor vehicles in North Carolina.
• A list of general sales and use tax exemptions and sales and use tax exemptions for farmers can be found in N.C. Gen. Stat. § 105-164.13 and § 105-164.13E, respectively.
• Properly completed Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption, must include the purchaser’s name, address, certificate of registration number, reason for exemption, and type of business.
• Auctioneers, tag sale operators, and other marketplace facilitators can register for North Carolina sales and use tax via the Department’s online business registration portal or by submitting a completed Form NC-BR.
• Retailers are required to file a Sales and Use Tax Return on a quarterly, monthly, or monthly with prepayment basis depending on the retailer’s total monthly sales and use tax liability.

FAQs for Auctioneers on Sales and Use Tax Collection in North Carolina

• As of February 1, 2020, an auctioneer meeting the definition of a marketplace facilitator is liable for collecting and remitting sales and use tax on taxable marketplace-facilitated sales.
• The liability applies when the auctioneer lists or makes available for sale a marketplace seller's items through a marketplace owned or operated by the facilitator and collects the sales price or processes payment.
• The marketplace facilitator is responsible for collecting and remitting sales tax when their sales meet the threshold of either gross sales in excess of $100,000 or 200 or more separate transactions sourced to North Carolina.
• An auctioneer that is a marketplace facilitator is not obligated to collect and remit sales and use tax on its marketplace facilitated sales made prior to meeting the threshold.
• An auctioneer that only calls bids and does not conduct other activities at an event is not a marketplace facilitator and is not required to collect and remit sales and use tax.
• Auctioneers and tag sale operators who sell new or used household possessions, equipment, and tangible personal property at estate sales or auctions in North Carolina are liable for collecting and remitting sales and use tax on such transactions.
• The location of the sale, whether at the property owner’s home or farm, does not affect the auctioneer’s tax obligations.
• Auctioneers are not required to collect and remit sales and use tax on sales of real estate or motor vehicles in North Carolina.
• A list of general sales and use tax exemptions and sales and use tax exemptions for farmers can be found in N.C. Gen. Stat. § 105-164.13 and § 105-164.13E, respectively.
• Properly completed Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption, must include the purchaser’s name, address, certificate of registration number, reason for exemption, and type of business.
• Auctioneers, tag sale operators, and other marketplace facilitators can register for North Carolina sales and use tax via the Department’s online business registration portal or by submitting a completed Form NC-BR.
• Retailers are required to file a Sales and Use Tax Return on a quarterly, monthly, or monthly with prepayment basis depending on the retailer’s total monthly sales and use tax liability.