SECTION .1000 ‑ BARBERS: BEAUTY SHOP OPERATORS: SHOE

REPAIRMEN: WATCH REPAIRMEN

 

17 NCAC 07B .1001          BARBER AND BEAUTICIAN SUPPLIES

(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.

 

History Note:        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.