Resale certificates by state
North Carolina resale certificate
The official form, whether North Carolina takes the multistate certificates, and what buyers and sellers need to do to keep a resale purchase tax-free.
Official sources checked
Quick answer
- Official form
- Streamlined Sales and Use Tax Certificate of Exemption (E-595E) · Get the form (opens in a new tab)
- Issued by the North Carolina Department of Revenue.
- Expires?
- No set expiry
- An unchecked single-purchase box makes the certificate a blanket certificate. It stays in effect until the buyer cancels it, as long as no more than 12 months pass between sales (a recurring business relationship). NCDOR may not require renewal while that relationship continues.
- Accepts the SST certificate?
- Yes
- Streamlined Sales Tax full member state.
- Accepts the MTC certificate?
- Yes
- Out-of-state buyers can use it?
- With limits
- E-595E is NCDOR's version of the multistate Streamlined certificate. If the buyer is required to register in North Carolina, it must enter its NC number. A buyer that is not registered in NC may enter a sales tax ID issued by any state. A buyer with no state sales tax ID enters its FEIN, another state business ID, or a driver's license number. Under G.S. 105-164.28(a)(4), drop-shipment resale exemptions apply whether or not the buyer is registered in NC.
- Buyer must be registered in North Carolina?
- With limits
- Only if the buyer is itself required to register in North Carolina. Otherwise another state's ID is accepted. The seller does not have to verify the ID number (G.S. 105-164.28(b)).
How to fill out and accept the certificate
- Section 1: check the single-purchase box and enter the invoice or PO number, or leave it blank to make a blanket certificate.
- Section 2: enter the purchaser's and seller's names and addresses. Section 3: check the purchaser's type of business.
- Section 4: check reason G (Resale). Section 5: enter the ID number next to NC (the NC registration number if required to register, otherwise another state's sales tax ID, FEIN, or other ID as the instructions allow).
- Section 6: sign (a signature is not needed on electronic certificates), print name and title, and add phone and email. Give the form to the seller, not to NCDOR.
When a seller is protected
The seller is not liable if it gets a fully completed certificate, or the same data elements, at the time of sale or within 90 days after, did not fraudulently fail to collect tax, and did not solicit improper exemption claims. If NCDOR later asks for substantiation, the seller has 120 days to get a fully completed certificate given in good faith (the exemption was available in NC, could apply to the item, and is reasonable for the buyer's business) or other proof the sale was not taxable. Relief is lost if the seller knew or had reason to know the information was materially false.
Seller record-keeping
G.S. 105-164.22 and 105-164.28 require the seller to keep exemption records in a retrievable format but set no number of years. NCDOR guidance for some other exemption types says at least three years.
The North Carolina Department of Revenue lets sellers check a buyer's registration or certificate online: official lookup (opens in a new tab).
Common mistakes
- Sending the completed form to NCDOR or the Streamlined governing board instead of giving it to the seller and keeping a copy.
- Buying items tax-free for resale and then using them. The buyer owes use tax on anything it does not resell (G.S. 105-164.28(d)).
- Missing required data elements on a paper certificate, such as signature, registration number, reason for exemption, or type of business. Without them the seller has no relief.
Multistate certificates in North Carolina
SST Certificate of Exemption
Yes
North Carolina is a Streamlined Sales Tax full member state, so sellers can accept the SST Certificate of Exemption for resale.
MTC Uniform Resale Certificate
Yes
MTC note: Not a valid exemption certificate when signed by someone, such as a contractor, who will use the property; governed by G.S. 105-164.28.
North Carolina resale certificate FAQ
What form is used for a resale certificate in North Carolina?
North Carolina's resale certificate is the Streamlined Sales and Use Tax Certificate of Exemption (E-595E), published by the North Carolina Department of Revenue. Download it from the North Carolina Department of Revenue website; sellers keep the completed certificate rather than sending it to the state.
Does North Carolina accept multistate resale certificates?
North Carolina is a Streamlined Sales Tax full member state, so sellers can accept the SST Certificate of Exemption for resale. North Carolina is on the Multistate Tax Commission's list of states that accept its Uniform Sales & Use Tax Resale Certificate. MTC note: Not a valid exemption certificate when signed by someone, such as a contractor, who will use the property; governed by G.S. 105-164.28.
Do North Carolina resale certificates expire?
An unchecked single-purchase box makes the certificate a blanket certificate. It stays in effect until the buyer cancels it, as long as no more than 12 months pass between sales (a recurring business relationship). NCDOR may not require renewal while that relationship continues.
Can an out-of-state business use a resale certificate in North Carolina?
E-595E is NCDOR's version of the multistate Streamlined certificate. If the buyer is required to register in North Carolina, it must enter its NC number. A buyer that is not registered in NC may enter a sales tax ID issued by any state. A buyer with no state sales tax ID enters its FEIN, another state business ID, or a driver's license number. Under G.S. 105-164.28(a)(4), drop-shipment resale exemptions apply whether or not the buyer is registered in NC.
Related reading
- North Carolina sales tax guide: rates, nexus thresholds and filing rules
- North Carolina sales and use tax exemptions
- Resale certificates: who qualifies and how to get one
- How out-of-state resale certificates work
- Sales tax exemption guide
Sources
- NCDOR Form E-595E page (opens in a new tab)
- Form E-595E (web-fill PDF with instructions) (opens in a new tab)
- N.C. Gen. Stat. 105-164.28 Certificate of exemption (opens in a new tab)
- NCDOR Sales and Use Tax Number Registries (opens in a new tab)
- NCDOR Sales Tax Guidance for Newly Registered Taxpayers (opens in a new tab)
- MTC Uniform Sales & Use Tax Resale Certificate (rev. 10/14/2022) (opens in a new tab)
- SST member state list (opens in a new tab)
- SST Certificate of Exemption (F0003) (opens in a new tab)
- SST Exemptions page (opens in a new tab)
This page is general information, not tax or legal advice. Forms and rules change, so confirm with the North Carolina Department of Revenue before you rely on a certificate.
Resale certificates in other states
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