The place to find business sales tax information

— as well as solutions, services and jobs!

General Contractor in NC purchased items for plant in VA. Company in VA delivered to NC. VA sales tax was paid, but now they want NC sales tax on 2 old invoices.

Full Question: General Contractor in NC purchased generators for water plant in VA. The company in VA delivered the generators to NC. On the invoice we paid VA sales tax.. They are now trying to collect NC Sales tax from a 2007 invoice and a 2010 invoice. What tax does a GC in NC have to pay?

Brought to you by:

NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to our disclaimer.

Answer:

Diane Yetter photoIf the property was delivered by the seller from VA to NC, then NC tax is due. If the purchaser picked up the generators from VA, then VA tax is due. I'm assuming the seller charged the wrong tax. If they are attempting to collect NC tax from you on top of the VA tax they originally charged you, they should deduct the VA tax you already paid. They will need to pay the full amount to NC and file for a refund from VA. They should not require you do that as they collected the wrong state's tax. If they tell you that they can't obtain a refund from VA as the statute of limitations has passed, that should not result in you paying the tax twice. However, it is reasonable for them to request you to pay the difference between the VA and NC tax rates.

(Not quite what you need? View SALES TAX QUESTIONS home page to access other topics or use site-wide SEARCH in upper right)

Disclaimer:

Access to any portion of SalesTaxSupport.com is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by SalesTaxSupport.com of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.