The place to find business sales tax information

— as well as solutions, services and jobs!

IA company has NC telecommuter who makes phone sales and attends trade shows. What about nexus?

Full Question: My client has an employee in North Carolina who works from a home office. 99% of what he does is make phone solicitation to customers in and out of North Carolina. The other 1% is attending trade shows. The company has no other physical presence in the state and all customer orders are placed, approved, and fulfilled in the Iowa office. Does this company have North Carolina sales tax nexus?

Brought to you by:

NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to our disclaimer.


Diane Yetter photoThe presence of the employee in North Carolina and the employee's soliciting activities do create North Carolina sales tax nexus. A retailer is considered to be engaged in business in North Carolina if they are "maintaining, occupying, or using permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name, any office, place of distribution, sales or sample room, warehouse or storage place, or other place of business for selling or delivering tangible personal property, digital property, or a service for storage, use, or consumption in North Carolina..." A retailer is also considered to be engaged in business in North Carolina if they are "permanently or temporarily, directly or through a subsidiary, having any representative, agent, sales representative, or solicitor operating in North Carolina in the selling or delivering..." A retailer who makes a remote sale is engaged in business in North Carolina and is subject to sales and use tax if the retailer solicits or transacts business in North Carolina by employees, independent contractors, agents, or other representatives, whether the remote sales subject to tax result from or are related in any other way to the solicitation or transaction of business. A "remote sale" is defined as a sale of tangible personal property or digital property ordered by mail, telephone, via the Internet, or by another similar method, to a purchaser who is in North Carolina at the time the order is remitted, from a retailer who receives the order in another state and delivers the property or causes it to be delivered to a person in North Carolina. It is presumed that a resident of North Carolina who remits an order was in North Carolina at the time the order was remitted. As you have an employee working from a home office as a solicitor in North Carolina, you have North Carolina sales tax nexus.

(Not quite what you need? View SALES TAX QUESTIONS home page to access other topics or use site-wide SEARCH in upper right)


Access to any portion of is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.