Remote sellers who meet South Carolina’s economic nexus standard on or after October 1, 2018, are required to obtain a retail license from the Department and remit South Carolina Sales and Use Taxes beginning the first day of the second calendar month after economic nexus is established. (This is approximately 30 days from the end of the month in which economic nexus is established.)

The remote seller is not required to collect and remit Sales and Use Tax on sales that occurred prior to November 1, 2018.

A retailer has physical nexus with South Carolina if it maintains within South Carolina, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent operating within South Carolina under the authority of the retailer or its subsidiary, regardless of whether the business or agent is located here permanently or temporarily or whether the retailer or subsidiary is admitted to do business within South Carolina.

A retailer with physical nexus with South Carolina must begin collecting and remitting the South Carolina Sales and Use Tax for deliveries into South Carolina effective the date physical nexus is established. 

Yes. Once a retailer establishes physical nexus with South Carolina, the retailer must obtain a Retail License and begin collecting and remitting the Sales and Use Tax effective the date physical nexus is established.

All local Sales and Use Taxes administered by the SCDOR are remitted to the SCDOR.

Yes. Remote sellers licensed with South Carolina for Sales and Use Tax purposes must collect and remit to the SCDOR the applicable local Sales and Use Taxes.  

Note: Certain counties have local hospitality taxes, which must be reported and paid directly to counties; however, this situation is rare for remote sellers.

For information on local taxes administered and collected by the SCDOR, visit our Sales and Use Tax page.

No.  South Carolina state and local Sales and Use Taxes are reported on one return.

South Carolina imposes a Sales and Use Tax on all sales of tangible personal property delivered into South Carolina, unless an exemption or exclusion applies.  

In addition, the following services are specifically subject to the South Carolina Sales and Use Tax: 

• communications
• laundry and related services
• furnishing of accommodations
• electricity

Note: See the Exemptions and Exclusions FAQ section for examples of sales that are exempt or excluded from Sales and Use Tax. 

The measure upon which the sales tax is based is “gross proceeds of sales” as defined in SC Code Section 12-36-90. The measure upon which the use tax is based is “sales price” as defined in SC Code Section 12-36-130. 

Note: See SC Code Section 12-36-90 and SC Code Section 12-36-130 for information as to what is included and what is not included in “gross proceeds of sales” and “sales price.”

Generally, “gross proceeds of sales” and “sales price” are the total amount charged in conjunction with the sale or rental of tangible personal property. 

Example: Assume a remote seller sells a computer for $1,200 and ships it at no additional charge to a South Carolina customer. However, at the time of the purchase of the computer, the South Carolina customer exercises an option and purchases an extended warranty for $200. The total amount charged in conjunction with the sale of the computer, or the “gross proceeds of sales” or “sales price” of the computer, is $1,400.

Yes. Remote sellers who meet South Carolina’s economic nexus standard are required to remit Sales and Use Tax on all taxable sales into South Carolina, including sales made by the remote seller through his website or catalog and telephone sales operations.  

The Internet Tax Freedom Act prohibits South Carolina from imposing Sales and Use Tax on internet access services, but it does not prohibit South Carolina from taxing sales made online. 

Yes. Sales of various items, and sales to certain entities, are specifically exempted or excluded from State and local Sales and Use Taxes. For example, the following sales are exempt from State and local Sales and Use Taxes:

• Sales to the federal government
• Sales of prescription medicine sold to an individual by prescription
• Sales of clothing, computers, and school supplies during the annual Sales Tax Holiday (the first Friday, Saturday, and Sunday in August)
• Sales of textbooks for use in a course of study at elementary schools, middle schools, high schools, and colleges

In addition, sales of unprepared food (i.e., food that may be purchased with U.S. Department of Agriculture food stamps) are exempt from the State Sales and Use Tax. Whether sales of such unprepared food are exempt from local Sales and Use Tax depends on the type of local Sales and Use Tax being imposed.

South Carolina imposes the following State tax rates under the Sales and Use Tax law:
 

Most local Sales and Use Taxes administered and collected by the SCDOR are currently imposed at a rate of 1%. Only the two local transportation Sales and Use Taxes imposed in Charleston county are imposed at a rate other than 1% - with each being imposed at a rate of ½ of 1%.

Note: Currently, 43 of the 46 counties in South Carolina impose one or more county-wide local Sales and Use Taxes. The total local Sales and Use Tax rate in a particular county or city depends on the number of local Sales and Use Taxes imposed in that county or city and can range from 0% to 3% at this time. Only one city, Myrtle Beach, imposes a city-wide local Sales and Use Tax.

See current Local Sales Tax Rates.

Sales and Use Tax returns are due by the 20th of the month following the end of the month in which the sales occurred. For example, for sales that occur in November, the November return must be filed by December 20. 

Yes, provided certain requirements are met and filing on a quarterly or annual basis has been approved by the SCDOR. To determine if you are eligible to file quarterly or annually, please contact our Sales Tax​ section. 

Yes. A Sales and Use Tax return is due for each filing period the Sales and Use Tax account is open, including filing periods for which the remote seller will file a “zero sales" return.

Yes. A Sales and Use Tax return is due for each filing period the Sales and Use Tax account is open, including filing periods for which the remote seller will file a “zero tax due” return. 

In the case of a return in which all sales are exempt sales, the remote seller must still report its “gross proceeds of sales” and take a deduction for all exempt sales which will result in a “zero tax due” return.

Yes.  If returns are filed and the taxes are paid in full by the due date, the taxpayer is allowed a discount on taxes due. For taxes less than $100, you may take a 3% discount of the tax. For taxes of $100 or more, the discount is 2% of the tax.

The maximum discount allowed per taxpayer (all locations included) during the state’s fiscal year (July 1 - June 30) is $3,000. The discount is increased to a maximum of $3,100 if the retailer files his Sales and Use Tax returns electronically.

Remote sellers not required by law to collect the South Carolina Sales and Use Tax (i.e., do not have physical nexus or economic nexus), but who voluntarily register to do so, are allowed a maximum discount of $10,000 each fiscal year. 

The discount (whether $3,000, $3,100 or $10,000) is calculated from the June return filed in July to the May return filed in June.

Purchasers in South Carolina may see an increased number of remote sellers charging South Carolina Sales and Use Tax. As before Wayfair, if a remote seller does not charge Sales or Use Tax on a taxable item delivered in South Carolina, the purchaser should pay Use Tax on the purchase price. For example, an individual may report the Use Tax on his South Carolina Individual Income Tax return or by filing Form UT-3. 

For additional information, see SC Revenue Ruling #18-9.

It depends. South Carolina based retailers should be aware that they may have an obligation to collect and remit the Sales and Use Tax of other states if they are making retail sales for delivery into other states. Each state has its own nexus standard as to when a remote seller has established an economic presence.