The South Carolina Department of Revenue (SCDOR) is now accepting retail sales tax applications from third-party suppliers whose products are sold on Amazon.com to South Carolina purchasers. The purpose for accepting these applications is to give these retailers the ability to collect and remit the appropriate Sales and Use Tax for these sales until the current legal matter between the SCDOR and Amazon Services, LLC is resolved.
The SCDOR maintains that under South Carolina law, Amazon Services, LLC is the retailer responsible for collecting and remitting Sales and Use Tax on all goods sold on Amazon.com. On July 21, 2017, Amazon Services, LLC filed a legal challenge to South Carolina's Sales and Use Tax laws, asserting it is not the retailer and is not responsible for collecting and remitting Sales and Use Tax on third-party supplier products sold on Amazon.com.
The SCDOR filed a motion with the Administrative Law Court to compel Amazon Services, LLC to begin collecting Sales and Use Tax on all sales made through Amazon.com and to hold such taxes in a trust until the Court decides Amazon's legal challenge. The motion was denied, but the case is ongoing and scheduled for trial in November of 2018.
Following the Court's denial of the motion, several third-party suppliers requested guidance from the SCDOR regarding their potential tax liability if the Court ultimately rules in favor of Amazon Services, LLC and finds that third-party suppliers—rather than Amazon Services, LLC—are the retailers responsible for collecting and remitting Sales and Use Tax on goods sold on Amazon.com. As a result, the SCDOR will now accept retail sales tax applications and allow third-party suppliers to remit Sales and Use Tax for their products sold on Amazon.com.
How to Register
- Third-party suppliers who have already registered as a retailer may keep their current license.
- Third-party suppliers wishing to register as a retailer may register online using the SCDOR's 24/7 online tax service portal, MyDORWAY, or file by paper using the SCDOR-111.
SCDOR Public Affairs Office