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Sales & Use Tax deductions

​Deductions​ are the exclusions and the exemptions authorized under the South Carolina ​Sales & Use Tax Act. You can claim any applicable deductions​ when filing your Sales & Use Tax​ Return​​.​

Not all deductions are listed below. Please see ​SC Code Section 12​-36-2120 for a complete list. 
(EDI/XML codes provided)
All Sales/Deliveries to Catawba Reservation

All Sales and Deliveries to Catawba Reservation Sales made on the Catawba Reservation are exempt from the state and local Sales and Use Taxes, except when retail sales occur on the reservation as a result of delivery from outside the reservation, and the gross proceeds of sale are $100 or less: ​ SC Code Section 27-16-130​(H)
Bad Debts & Repossessions

Sales of property that are actually charged as bad debts or uncollectible accounts for state Income Tax purposes. SC Code Section 12-36-90(2)(h)
Excess Over Tax Cap 

​For sales subject to Maximum Sales & Use Tax (Max Tax): SC Code Section 12-36-2110​
​​​ Exempt Sales
Some examples include agricultural farm products, educational material used in a course of study, newspapers, lottery sales, and medicine sold by prescription.​ SC Code Section 12​-36-2120
Food purchased with USDA food stamps

Eligible food purchased with Food Stamps from a retailer authorized by the US Department of Agriculture to accept food stamps are exempt from the sales and use tax. 117-33​7.3(F)
Gasoline Sales 
Motor Fuel taxed under the Motor Fuel User Fee Law. SC Code Section 12-36-2120(15)(a)
Non-taxable Labor and Installations ​(4128)
Not subject to the sales or use tax are charges for installation incident to the sale of tangible personal property when such changes​ are separately stated from the sales price of the property on billing to customers and provided the seller's books and records of account show the reasonableness of such labor in a relation to the sales price of the property. 117-31​3.3
Other deductions
Some examples include third party sales, credit for taxes paid to other states, cash discounts, and trade-in allowances. ​SC Code Section 12-36-2120​
​​​​ Out-of-State Sales/Deliveries
Tangible personal property delivered out-of-state by South Carolina retailers. SC Code Section 12-36-2120(36)
Over 90 Day Stay

The lease or rental of accommodations supplied to the same person for a period of 90 continuous days. SC Code Section 12-36-920​(A)(2)
Returned Merchandise

The sales price of property returned by customers when the full sales price is refunded in cash or by credit. SC Code Section 12-36-90​(2)(b)
​​​ Sales for Resale 
Tangible personal property sold to licensed retail merchants, jobbers, dealers, or wholesalers for resale, and do not include sales to users or consumers not for resale. SC Code Section 12-36-120
​Sales Paid to DMV (IMF)
​Items subject to the Infrastructure Maintenance Fee (IMF) are exempt from the Maximum Sales and Use Tax. The IMF is reported and paid to the SC Department of Motor Vehicles (DMV). Generally, the fee is due on motor vehicles, motor cycles, trailers, and semitrailers pulled by a truck tractor, etc. SC Code Section 12-36-2120​(83)
Sales Tax Holiday 

Qualified purchases made during the annual Tax Free Weekend (also known as Sales Tax Holiday) on the first Friday, Saturday, and Sunday in August, including clothing, footwear, computers, school supplies, and certain bed & bath items​ See SC Code Section 12-36-2120(57) and Revenue Ruling #19-4​ for examples of qualified purchases.
Sales to Federal Government and Rentals to Federal Government and Foreign Diplomats

Sales to the federal government. SC Code Section 12-36-2120​(2)
Sales to Manufacturers

Sales of property "used directly" in manufacturing, compounding, or processing tangible personal property into products for sale. SC Code Section 12-36-120​(3)
​​​​​ Unprepared Food

Unprepared food that lawfully may be purchased with United States Department of Agriculture food coupons. This exemption does not apply to local taxes unless the local tax specifically exempts the sale of such food. SC Code Section 12-36-2120​(75)

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