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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?

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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.

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