Direct Pay Permits
Frequently Asked Questions
Beginning Jan. 1, 2020, Piedmont Natural Gas, a subsidiary of Duke Energy, will begin operating under Duke Energy’s Direct Pay Permit (DPP) policy, which affects the company’s payments of sales tax to vendors.
Beginning in January 2020, Piedmont Natural Gas will use a tool to automate the DPP policy via systematically short-paying applicable invoices (i.e., invoices with sales tax that do not fall into an exception category).
Suppliers can review and download copies of the Duke Energy’s, Progress’, and Piedmont’s Direct Pay Permits.
NOTICE: PNG Direct Pay Permits will be effective on 1/1/2020 and will be available at the above link on that date.Direct Pay Permit renewal is dependent upon the state from which is was issued. However, direct pay permits in North Carolina, South Carolina, and Tennessee do not expire and are valid until revoked by the appropriate Department of Revenue.
You may also need to evaluate your company’s practices around remittance of sales tax to the jurisdictional authority prior to receiving payment on an Piedmont Natural Gas invoice.
You should first review the Direct Pay Permits available to confirm if your state has issued a Direct Pay Permit to Piedmont Natural Gas. If you confirm that there is not a Direct Pay Permit in place then you should email APQuestions@duke-energy.com.
Additional state specific guidance is provided for reference. You can also reach out to dukesalestax@ey.com. Duke Energy uses EY for tax many tax operations.
In these situations, when Duke Energy has short-paid an invoice for the amount of the sales tax, it may be necessary to request funds back from the jurisdictional authority via a credit or refund to avoid double-payment of sales tax.