Is Shipping Taxable in South Carolina?
by January 21, 2021
Sales tax is complicated, and one of the more complicated aspects of dealing with sales tax is determining whether you should charge sales tax on the shipping amounts that you charge to your customers. Today we’ll look at sales tax on shipping in South Carolina.
Is Shipping Taxable in South Carolina?
Here’s what the South Carolina Department of Revenue has to say about sales tax on shipping charges:
This is a whole lot of legalese, but in short, if you – the seller – pay to ship the item then you should charge sales tax to the buyer based on the price of the item. I.e. If you’re an online seller and you pay UPS to send the goods to the buyer, charge sales tax on shipping. On the other hand, if the buyer arranges a shipping method, then the seller wouldn’t charge sales tax on shipping. (Which, to us, makes perfect sense, since it doesn’t appear that the seller would be involved in that transaction!)
Summary of Sales Tax on Shipping in South Carolina
In a nutshell, most online sellers should charge sales tax on shipping charges to customers in South Carolina.
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
