North Carolina has updated its “Optimized Sales and Use Tax Certificate” form (Form E-595E) to reflect changes adopted under the “Optimized Sales and Use” project. The E-595E form must be used for resale purchases or other exempt purchases. The revision of the form applies to transactions from January 1, 2018. The changes to the “5th Reason for Exemption” form do not apply to transactions that are otherwise subject to the local government, or to transit sales and user fees. According to N.C. Gene. Stat. P. 105-164.28 (e) a seller is not required to renew a flat-rate exemption certificate or to update information or data items from the exemption certificate where there is a recurring business relationship between the purchase and the seller.
A seller may consider a recurring business relationship as given if a period between sales transactions does not exceed 12 months. In the absence of a recurring business relationship, a seller must obtain a newly completed E-595E form from a buyer for a sale transaction on or after the date the notification is issued by the department or within 90 days of the sale in accordance with the N.C. Gen. Stat. If you are a retailer doing business in North Carolina, this could have an impact on you. It is important that you remember if you need a new exemption certificate from some buyers. A qualified tax lawyer can assist in the event of any questions or concerns that may arise.