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Form E-595C Reverse

General Information

Pursuant to G.S. 105-164.27A, a direct pay permit can be issued to a purchaser of direct mail.

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G.S. 105-164.3(7a) defines direct mail as “Printed material delivered or distributed by the United States Postal

Service or other delivery service to a mass audience or to addresses on a mailing list provided by the pur-

chaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients. The

term includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail

seller for inclusion in the package containing the printed material. The term does not include multiple items of

printed material delivered to a single address.”

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A direct pay permit for direct mail authorizes its holder to purchase direct mail without paying tax to the seller

and authorizes the seller to not collect any tax on a sale to the permit holder. A person who purchases direct

mail under a direct pay permit must timely file a return and pay the tax due to the Department. A direct pay

permit issued for direct mail does not apply to any tax other than the tax on direct mail.

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Upon approval, the Department will issue a numbered direct pay permit for direct mail. The permit holder

should issue a copy of the permit to its vendors of direct mail.

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A direct pay permit that is issued to a vendor selling direct mail relieves the vendor from collecting and remitting

sales and use tax on the sale of all direct mail to the purchaser. A permit holder is liable for accruing and

remitting tax directly to the Department on all taxable direct mail purchased for which a direct pay permit has

been issued to a vendor. Sales and Use Tax Technical Bulletin Section 7-1 provides additional information on

the taxability of printed material.

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The Department may revoke a direct pay permit if the holder of the permit does not file a sales and use tax

return timely, does not pay the tax on time, or otherwise fails to comply with the Sales and Use Tax Laws.

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If you have questions, you may contact the Sales and Use Tax Division, NC Department of Revenue, P.O. Box

871, Raleigh, North Carolina 27602-0871. You may also telephone the Division at (919) 733-2151.

Line by Line Instructions

Line 1 - Enter your firm’s Federal Employer Identification Number (FEIN). Direct Pay Permits are issued by

FEIN. A separate application must be completed for each FEIN.

Line 2 - Enter your firm’s North Carolina Sales and Use Tax Account ID Number. If your firm does not have a

North Carolina Sales and Use Tax Account ID Number, complete Form AS/RP1, Registration Application

for Sales and Use Tax and Income Tax Withholding, and submit with this application.

Line 3 - Enter the Legal Business Name for which a Direct Pay Permit is requested.

Line 4 - Enter the Trade Name for which a Direct Pay Permit is requested.

Line 5 - Enter the business address of your firm in North Carolina.

Line 6 - Enter the mailing address to which all correspondence concerning the Direct Pay Permit should be

mailed.

Line 7 - Enter the number of locations in North Carolina.

Line 8 - Describe the type of business your firm operates.

Sign and date the application. Print your name along with your title, phone number, and e-mail address where you

can be reached if we have questions about your application. Mail your application to NC Department of

Revenue, Sales and Use Tax Division, P.O. Box 871, Raleigh, NC 27602-0871.

Form E-595c - Application For Direct Pay Permit For Sales And Use Taxes On Direct Mail Page 2

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