North Carolina eliminates economic nexus transaction threshold

Effective July 1, 2024, North Carolina simplifies economic nexus for remote sellers!

Previously, you might have had to track both sales volume and transaction count to determine if you needed to collect North Carolina sales tax. Now, it’s all about sales!

What’s the new threshold?

  • $100,000 or more in gross sales sourced to North Carolina in the current or previous calendar year.
  • This applies to both direct sales and marketplace sales.

What about the old rule?

  • Before July 1, 2024, the threshold was either exceeding $100,000 in sales or making 200 or more transactions in North Carolina.
  • This is no longer in effect.

What should I do?

  • Selling less than $100,000 in North Carolina? You may be able to cancel your sales tax registration.
  • Sold more than $100,000 in North Carolina in 2023 or 2024 (so far)? You still need to collect and remit sales tax.
  • Unsure? Check the North Carolina Department of Revenue’s examples or take the Avalara Sales Tax Risk Assessment.

Key takeaways:

  • North Carolina joins a growing list of states with a sales-only economic nexus threshold.
  • This simplifies compliance for out-of-state sellers.
  • Carefully consider if you should cancel or keep your sales tax registration.

Stay informed!

  • This is a recent change. Keep an eye on updates from the North Carolina Department of Revenue.

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