North Carolina Administrative Code › Title 17 - REVENUE › Chapter 07 - SALES AND USE TAX › Subchapter B - STATE SALES AND USE TAX › Section .1000 - BARBERS: BEAUTY SHOP OPERATORS: SHOE REPAIRMEN: WATCH REPAIRMEN › Section 07B .1001 - BARBER AND BEAUTICIAN SUPPLIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Sales to barber and beauty shop operators of
											  tools, furniture, fixtures, equipment, materials, health and beauty aids and any and all other supplies
											  purchased for use in connection with the operation of their business are subject to the applicable statutory
											  state and local sales or use tax. Barber and beauty shop supply houses and other businesses making sales of
											  the above items to barber and beauty shop operators to be used or consumed in rendering personal services to
											  their customers are liable for collecting and remitting the applicable statutory state and local sales or use
											  tax to this Department on such sales.
(b) Barber and beauty shop
											  operators who purchase hair tonics, cosmetics and other health and beauty aids for resale and who maintain an
											  inventory and facilities for regularly and continuously making retail sales of such items to their customers
											  shall register with this Department as retail merchants and are liable for collecting and remitting the
											  applicable statutory state and local sales or use tax on such sales. Barber and beauty shop operators
											  purchasing hair tonics, cosmetics and other health and beauty aids, some of which are regularly and
											  continuously sold to their customers and some of which are used or consumed in rendering personal services to
											  their customers, may purchase such items without payment of tax to barber and beauty shop supply houses and
											  other suppliers by furnishing the suppliers with properly executed Streamlined Sales Tax Agreement
											  Certificates of Exemption, Form E-595E. By executing the certificates, the barber and beauty shop operators
											  assume responsibility for payment of tax directly to this department on the sales price of items sold to
											  their customers and on the cost price of items used or consumed in rendering personal services to their
											  customers. The above provisions do not apply to barber and beauty shop operators who make occasional or
											  infrequent sales of hair tonics and other health and beauty aids from their stock of merchandise which was
											  purchased to be used in rendering services to their customers. Receipts of barber and beauty shop operators
											  derived from rendering personal services are not taxable.
Authority
													 G.S.
													 105-164.4;
													 105-164.6;
													 105-262; Article 39; Article 40; Article 42; Article 43;
													 Article 44;
Eff. February 1, 1976;
Amended Eff. April 1, 2006; October 1, 1993;
													 October 1, 1991;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. May
													 25, 2019.