NCDOR Participating in Online Marketplace Seller Voluntary Disclosure Initiative

North Carolina is participating in a special time-limited voluntary disclosure initiative managed by the Multistate Tax Commission (MTC) on behalf of participating states.  The initiative seeks to bring into compliance online marketplace sellers (sellers who use a marketplace provider/facilitator) to facilitate retail sales into North Carolina where the online marketplace seller’s activity in North Carolina is inventory stored in a third-party warehouse or fulfillment/sortation center located in the State.

North Carolina will consider applications for participation in the initiative made by all online marketplace sellers, including those that have been contacted by the Department of Revenue concerning their liability or potential liability for sales and use taxes, income, and franchise taxes.  Under the terms of the initiative, North Carolina will assert no liability for past taxes except in the case of sales and use taxes or withholding taxes collected but not remitted, in which case, a 10% failure to pay penalty will apply.

Application to participate in the initiative should be made through the MTC.  Upon approval of the application by the State, the taxpayer is encouraged to use North Carolina’s on-line registration process at A participating online marketplace seller is required to register and collect sales and uses taxes effective December 1, 2017 on a prospective basis.
The MTC National Nexus Program will accept applications from August 17, 2017 through October 17, 2017. 

For more information and to apply for the time-limited voluntary disclosure initiative, visit the MTC web site at