New Sales Tax On Service Contracts

New Sales Tax On Service Contracts

Effective January 1, 2014, businesses providing service contracts, including warranty agreements, maintenance agreements, repair contracts or similar agreements should carefully consider whether their contracts will be subject to NC sales tax.  If applicable, sales tax will apply to the sales price of a service contract sold by a retailer on or after January 1, 2014, and sourced to the state of NC.   For more information, the NC Department of Revenue has issued a directive on service contracts.

 

Written by

Steve Moss, CPA is a partner at Holden Moss CPAs and loves helping businesses and their owners grow to be the very best they can be. Our other offices include Raleigh, Oxford and Warrenton.

We are a little different at Holden Moss CPAs. While we still provide traditional tax and accounting services, years ago we realized many clients wanted help in running their businesses and were hungry for ideas, solutions, strategy, and execution. In response, we expanded our skill set and joined Ran One, a global network of business consulting firms. Our membership with Ran One gives us access to proprietary resources and analytical software to help our clients grow, become more profitable and valuable, and have the lifestyle they desire.

Now, blended into the fabric of our normal tax and accounting needs, we are focused on our clients’ businesses in a very different way. While our approach is not right for everyone, for those whom it is, incredible results may be obtained. Whether you have a new, or established, business, or for those in transition of selling or retiring, or for those who simply need to develop an exit strategy or succession plan, our unique approach to client service may be the edge you need.

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