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Learn the fundamentals of sales tax
Do you need to collect sales tax in South Carolina?
You’ll need to collect sales and use tax in South Carolina if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in South Carolina?
South Carolina considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business, or a physical presence
- An employee present
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in South Carolina in vehicles owned by the taxpayer
- Independent contractors or other representatives in South Carolina
You can click here to read exactly what the South Carolina Department of Revenue has to say about what constitutes sales tax nexus in South Carolina.
Do you have economic nexus in South Carolina?
Effective November 1 2018, South Carolina considers vendors who make more than $100,000 in sales annually in the previous or current calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state. You can read South Carolina’s economic nexus guidance for sellers here.
Is what you’re selling even taxable?
Services in South Carolina are generally not taxable. However – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Most tangible personal property is taxable in South Carolina, with a few exceptions. These sales tax exemptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in research and development.
Is SaaS taxable in South Carolina?
SaaS is considered a taxable service in South Carolina, as are other charges to access a website. (Source)
How to get a sales tax permit in South Carolina
A retail license can be obtained online, through the mail, or in person.
Online: Visit the South Carolina’s My DORWAY Service.
Mail: Complete Form SCDOR-111 by filling it out online here and mail it to:
SC Department of Revenue
Columbia, SC 29214-0140
In Person: Visit one of the following locations:
Charleston Service Center:
1 Southpark Circle
Charleston, S.C. 29407
Columbia Main Office:
300A Outlet Pointe Boulevard
Columbia, S.C. 29210
P.O. Box 125
Columbia, S.C. 29214
Florence Service Center:
1452 West Evans Street
P.O. Box 5418
Florence, S.C. 29502
Greenville Service Center:
545 North Pleasantburg Drive, Suite 300
Greenville, SC 29607
Myrtle Beach Service Center:
1330 Howard Parkway
P.O. Box 30427
Myrtle Beach, S.C. 29588
Rock Hill Service Center:
454 South Anderson Road
Business and Technology Center
P.O. Box 12099
Rock Hill, S.C. 29731
You need this information to register for a sales tax permit in South Carolina:
- Owner, partnership, corporate charter name
- Physical location
- Mailing address
- Type of business
- Type of ownership
- Names of business owner, partners, officers, and members
It costs $50.00 to register for a sales tax permit in South Carolina. Other business registration fees may apply. Contact each state’s individual department of revenue for more about registering your business.
Collecting Sales Tax
South Carolina is a destination-based sales tax state. So if you live in South Carolina, collect sales tax at the rate at your buyer’s location. The South Carolina sales tax rate is 6%.
You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator.
Should you collect sales tax on shipping charges in South Carolina?
If you charge for shipping as part of an order then shipping charges to South Carolina buyers are taxable. Read here for more about sales tax on shipping in South Carolina.
When are Returns Due?
When you file and pay South Carolina sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in South Carolina?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In South Carolina, you will be required to file and remit sales tax either monthly, quarterly, or annually.
South Carolina sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing Sales Tax
When it comes time to file sales tax in South Carolina you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to Calculate How Much Sales Tax You Owe in South Carolina
Calculating how much sales tax you should remit to the state of South Carolina is easy with TaxJar’s South Carolina sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your South Carolina sales tax return will be waiting for you in TaxJar. All you have to do is login.
How to File and Pay Sales Tax in South Carolina
You have two options for filing and paying your South Carolina sales tax:
- File online File online at the South Carolina Department of Revenue. You can remit your payment through their online system. Check here for our step-by-step guide to filing your South Carolina sales tax return.
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.