South Carolina sales tax is 6%, and some counties may have additional local rates. If you are selling taxable products in the state, you must register for a South Carolina Sales Tax permit, collect and remit the correct amount of tax on each sale, and keep excellent records. You must also file timely returns with the Department of Revenue.
In order to be required to collect South Carolina sales tax, you must have nexus in the state. This can be either physical or economic. Physical nexus means that you have a significant presence in the state, such as an office, warehouse, or distribution center; in other words, an inventory in the state that customers can access through the internet or having a representative or agent in the state. Economic nexus is determined by whether you have passed the state’s threshold for total revenue or number of transactions. However, in June 2018, the Supreme Court overturned this rule and now allows states to tax sellers based on their economic connection to the state.
Once you are registered, you must collect sales tax on all taxable goods and services sold in the state, and remit the collected tax to the state by a certain date. Failure to comply can result in fines and penalties. To make sure you are collecting the correct amount of tax, use a free sales tax calculator.
South Carolina Sales Tax Exempt Items
Obtaining sales tax exemption allows nonprofits to allocate more funds to fulfilling their mission. However, learning state requirements and preparing exemption applications can take valuable staff time.
Some products, like certain groceries and prescription medications, are exempt from sales tax in South Carolina. Some services, including software as a service (SaaS) and custom computer software, are also exempt. Most services and digital products, like media streaming and eBooks, are also exempt from South Carolina Sales Tax. However, it is important to check each product type’s specific rules and laws to ensure proper tax compliance.
South Carolina Sales Tax Due Dates
South Carolina requires all registered sales tax filers to file a return and remit collected tax by the 20th of the month following the reporting period. If the due date falls on a weekend, holiday, or other nonworking day, returns and payments are considered timely filed on the business day that follows.