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North Carolina Publishes Important Notice Regarding Shoe Repair and Polishing Services

North Carolina's Important Notice covers the taxability of shoe repair and shoe polishing services.

Effective March 1, 2016, 100% of the retailer’s sales price of the gross receipts derived from charges for shoe repair are taxable. These shoe repair services are subject to the general state, applicable local, and transit sales and use taxes.  Any retailer that provides shoe repair services must collect the tax on the entire charge to a customer for the shoe repair service. The tax charges are applicable regardless of whether the item repaired may have been received by the retailer prior to March 1, 2016.  Also, any retailer that does not collect the taxes due from a customer or remit the taxes due to the department remains liable for such taxes.

In addition, effective March 1, 2016, 100% of the retailer’s sales price of or the gross receipts derived from charges for shoe polishing services are taxable. Shoe-polishing services are subject to the general state, and applicable local and transit sales and use taxes. Retailers that provide shoe polishing services should collect the tax on the entire charges to customers for retail shoe polishing services. The tax charges are also applicable regardless of whether the item may have been received prior to March 1, 2016. Also, any retailer that does not collect the taxes due from a customer or remit the taxes due to the department remains liable for such taxes.

Any person that only provides polishing services and does not have any other sales transactions is not a retailer effective March 1, 2016. Therefore, this person is not required to collect and remit sales tax on the sales price of or the gross receipts derived from the shoe polishing services charges.

Vertex Inc. is dedicated to small and medium-sized businesses. Our end-to-end service model is unique in our industry, because it was built with the end result of compliance in mind.  This ensures that the returns and compliance data you submit to the agencies is right the first time—every time.

 

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