The sale price or gross revenue generated by repair, maintenance and installation services sold in the retail trade are subject to the tax on turnover and use of the state and the localization and transit rates in force. Repair, maintenance and installation services are available in N.C Gen. Stat. 105-164.3 and are defined in accordance with the procurement principles defined by N.C gene. Stat. North Carolina has issued an opinion on changes to the taxation of service contracts. Effective October 1, 2014, an upstream tax is levied on the sale price or gross revenue from a retail services contract in the 4.75% of the public state and the current place and transit rates. “service contract” is defined as a contract by which the debtor undertakes to maintain or repair personal equipment or a motor vehicle. For example, a service contract is a warranty contract other than a manufacturer`s warranty or dealer guarantee provided free of charge to the buyer, a renewed warranty contract, a maintenance contract, a repair contract or a similar contract or contract.
A “debtor” is a person who, legally or contractually, is required to provide the purchaser with the services related to the service contract. An “intermediary” is a person who, together with the debtor of the service contract, enters into contracts to market the service contract and accepts payment by the purchaser for the service contract. The tax on turnover and the use of the sale of a service contract is due and payable by the merchant. The distributor is designated as: [1] See NC gene. Stat. Businesses that provide only repair, maintenance and installation services and never sell tangible assets are excluded from the definition of retail, meaning they will probably not have to start assessing the revenue tax. The term “installation fee” is part of the definition of “sale price” in the sense of N.C gene. Stat. The cost of installing a retailer to a buyer in the retail sale of physical personal property, certain digital real estate and taxable services is subject to the current rate of revenue tax and use of Article N.C.
Recent Comments