Background
State of North Carolina demands from remote sellers to register, collect, and remit sales and use tax, when they are engaged in the business in the state, and when they trigger any of the thresholds designated for this groups of sellers.
For non-resident remote vendors, the main trigger that requires sales and use tax registration is the economic nexus threshold. North Carolina requires foreign remote sellers to register for the state sales and use tax when they surpass the economic threshold, sitting at USD 100,000, for annual gross sales sourced to the state.
To drive the number of the remote seller registrations, the North Carolina Department of Revenue, issued a circular informing non-registered remote sellers, who solely exceed the sales based threshold additional 60 days for mandatory registration, starting from July 2, 2026.
Effective Date
Effective July 2, 2026, remote sellers that solely exceed the gross sales threshold are given at least an additional 60 days to register and start collecting sales and use tax.
New Remote Seller Framework
Starting by July 2, 2026, North Caroina give remote vendors who solely exceed the sales threshold of USD 100,000, at least additional 60 days registration period(grace period). Remote vendors who are eligible for a grace period are mandated to register by the first day of the month following the grace period.
The sales and use tax accountability begins on the first day of registration, or from the first day when they should have been registered under new terms and conditions.
The grace period benefit does not apply to remote sellers who have established physical presence, inventory, or other nexus-creating factors in North Carolina.