How to File North Carolina Sales Tax Online

Filing your North Carolina sales tax return is simple with the state’s online system. You can file and pay directly through the North Carolina Department of Revenue (NCDOR) Online Filing and Payment System, as long as your business is registered to collect and remit sales tax. This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with North Carolina’s sales tax rules.

What You Need Before Filing

Before filing your North Carolina sales tax return, make sure you have all the required information and documents prepared. Doing so will help prevent delays or inaccuracies in your filing.

• North Carolina Sales and Use Tax Account ID (Sales Tax Permit) – You must have an active sales tax account before filing. This ID number is issued once your registration with the North Carolina Department of Revenue is approved.
• NCDOR Account Log-in Details – Access to your Online Filing and Payment System is required. Have your username, password, and authentication details ready.
• Total Sales – Gather your total sales for the reporting period, including taxable and non-taxable sales.
• Taxable Sales and Purchases – Collect detailed records of taxable transactions and any purchases subject to use tax.
• County and Local Sales Tax Data – North Carolina requires businesses to report taxes for each county where sales occurred. Ensure your Shopify or ecommerce reports clearly separate these amounts.
• Federal Employer Identification Number (FEIN) – This is needed when completing your return online.
• Bank Account and Routing Number – Prepare payment details for remitting your tax due through ACH debit or credit.
• Filing Frequency Schedule – North Carolina assigns filing frequencies (monthly, quarterly, or monthly with prepayment) based on your average tax liability. You can find your assigned frequency on your NCDOR correspondence or sales tax permit.

Step-by-Step: How to File North Carolina Sales Tax Online

The North Carolina Department of Revenue allows you to electronically file and pay your sales and use tax return (Form E-500) through its Online Filing and Payment System. The process is simple and follows a logical order of data entry, verification, and submission.

Step 1. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).

Step 2. Go to the North Carolina Sales and Use Tax Online Filing and Payment System.

Step 3. Log in using your sales tax license registration information. Click Next.  Step 4. Enter your Account ID, then click Submit. Step 5. Verify your account information. If correct, click Next. Step 6. Choose the first option on the page, then click Next. Step 7. Fill in your sales tax period and FEIN, then click Next. Step 8. On the return form, fill in all required fields based on your Ecommerce Sales Tax Data. Click Next at the bottom of the page. Step 9. Enter your county-level taxes on the next page (Form E-536). Review totals carefully, then click Next. Step 10. Select your mode of payment. Step 11. Enter payment account information and other details as prompted. Step 12. Authorize payment by re-entering your account number, then click Next.

Step 13. Review all return and payment information carefully, then click Submit. Step 14. Confirm your submission by clicking Yes. Step 15. Save the returns and/or payment confirmation as proof of successful submission. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option. Helpful tip: If your filing is interrupted by internet issues or website downtime, click “Save and Exit” to avoid losing progress.

Due Dates

Filing frequency in North Carolina depends on your total tax liability. The Secretary of Revenue assigns filing schedules as follows:

FREQUENCY	REQUIREMENT	REPORTING PERIOD	DUE DATE
Monthly with prepayment	Total tax liability is consistently $20,000 or more per month	Each calendar month (with 65% prepayment for next month)	20th of the following month
Monthly	Total tax liability is between $100 and $20,000 per month	Each calendar month	20th day of the following month
Quarterly	Total tax liability is consistently less than $100 per month	Jan–Mar, Apr–Jun, Jul–Sep, Oct–Dec	Last day of April, July, October, and January

Timely Filing Discount

Some states provide discounts for filing and paying on time. North Carolina does not currently offer a timely filing or vendor discount for sales and use tax filers.

• The discount is 1.2% of the first $6,000 of sales tax collected.
• For amounts over $6,000, the discount is 0.9%, plus an additional $18 from the first $6,000 calculation.
• The maximum discount you can claim is $500 per return.
• For vendors filing consolidated returns, the $500 maximum applies across all combined filings.

To claim the discount, calculate it directly on your sales and use tax return (Form 202). Enter the discount amount on Line 8.

Filing Amended Returns

If you discover an error on a previously filed North Carolina sales tax return, you must submit an amended return to correct it. You can use a copy of your original Form E-500 or one of the extra blank returns from your tax booklet to make the corrections. Clearly mark the form “AMENDED RETURN” and mail it to the North Carolina Department of Revenue along with any additional tax, penalty, or interest due. 

Refunds

If you overpaid North Carolina sales or use tax, you may be eligible for a refund. 

A taxpayer can request a refund of an overpayment by taking one of the following actions within the state’s refund statute of limitations. 

Refunds are allowed if the claim is made within three years after the return’s due date or within two years after payment of the tax, whichever is later. You can request a refund by:

• Filing an amended return that reflects the overpayment due. 
• Submitting Form E-588 (Business Claim for Refund – State, County, and Transit Sales and Use Taxes). The claim must include your business information, the tax type and amount overpaid, the filing period, and the basis for the claim.

Filing Zero Returns in North Carolina

If your business had no taxable sales during a filing period, you must still submit a zero return to remain compliant.

When filing online, select the option “File zero tax due E-500” in the NCDOR portal. This allows you to report zero tax due for the period while keeping your account active and in good standing.

Failing to file a zero return can result in a minimum penalty equal to five percent (5%) of the amount of the tax (which is $0 for a zero return) or a penalty of $5, whichever is greater, even when no tax is owed. While the penalty may be low for a zero-dollar return, repeated failure to file can lead to the cancellation of your registration.

Other Filing Methods in North Carolina

If you’re unable to file online, limited alternatives are available through the Department of Revenue:

• Online Filing (Recommended): File and pay securely using the NCDOR Online Filing and Payment System.
• By Mail: Mail payments to:
  North Carolina Department of Revenue
  P.O. Box 25000
  Raleigh, NC 27640-0640
• By Telephone: Call 1-877-252-3052 for select filing and payment options.
• By Electronic Funds Transfer (EFT): Payments can also be made via ACH Debit or ACH Credit.
• File with TaxHero: Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business. 

 

Let TaxHero Manage Your North Carolina Sales Tax Returns

TaxHero doesn’t just handle your North Carolina sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.

This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.

Don’t wait until the next deadline, schedule your demo today!