17 NCAC 07B .3801          PREMIUMS AND GIFTS

Sales to a retailer of tangible personal property for use by the retailer as premiums or gifts are subject to the applicable statutory state and local sales or use tax and the purchaser shall remit the tax on the purchases to his suppliers.  If the suppliers are located outside this state and do not collect the North Carolina sales or use tax on the purchases, the purchaser shall remit such tax directly to the Department.  If the property purchased is of the character customarily sold by the retailer, he may purchase the same without payment of the tax if he furnishes his supplier with a Streamlined Sales and Use Tax Agreement Certificate of Exemption, Form E-595E.  In this case, the retailer must remit to the Department the tax on all taxable articles withdrawn from stock and used as premiums or gifts.  The provisions of this Rule do not apply to any purchases of property to be used in redeeming trading stamps or other media.


History Note:        Authority G.S. 105-164.4; 105-164.6; 105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;

Eff. February 1, 1976;

Amended Eff. August 1, 2009; October 1, 1993; October 1, 1991.