Remote Sellers

An out of state retailer that has no physical presence in South Carolina
A seller whose gross revenue exceeds $100,000, in the previous or current calendar year, from sales of:

Tangible personal property
Products transferred electronically
Services delivered into South Carolina

A remote seller has physical nexus with South Carolina when they directly or by a subsidiary, maintains 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, temporarily, or whether the retailer or subsidiary is qualified to do business within South Carolina.

For more information, see Chapter 13 Nexus of our Sales and Use Tax Manual.

Unsure if you had nexus with South Carolina for previous tax years?
Learn more about Voluntary Disclosure before you apply for a Retail License to avoid delays in receiving your Retail License.

Apply for a Retail License

Remote sellers with nexus to South Carolina must register for a Retail License with the SCDOR. We recommend applying for a Retail License on MyDORWAY. This video shows you how to register your business and apply for a Retail License.

What you should know about the Retail License:

A Retail License has a one-time $50 fee for each of your retail locations.
If a remote seller closes their South Carolina Retail License, they must pay another $50 to obtain a new Retail License.
A remote seller who does not meet South Carolina’s economic nexus standard can still voluntarily obtain a Retail License and remit Sales and Use Tax at any time.
See our FAQs below for more information about Retail Licenses and visit our MyDORWAY Help page to learn more about our free and secure tax portal.

See frequently asked questions

Effective Date for Obtaining a Retail License and Remitting the Sales and Use Tax - Economic Nexus

Effective Date for Obtaining a Retail License and Remitting the Sales and Use Tax - Physical Nexus

Local Taxes

Taxable Transactions

What sales are taxable in South Carolina?

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.

What is the measure of the Sales and Use Tax?

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

Note: See Code Section 12-36-90 and 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.”

What is an example of “gross proceeds of sales” or “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.

Are remote sellers required to remit Sales and Use Tax on sales made online?

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 does not prohibit South Carolina from taxing sales made online.

Exemptions and Exclusions

Tax Rates

Retail Licenses and Filing Requirements

When are Sales and Use Tax returns due?

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 20th.

Can I file quarterly or annually instead of monthly?

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

Do I need to file a return if I don’t make any sales for a particular filing period (e.g., monthly, quarterly, annually)?

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.

Do I need to file a return if all my sales are exempt sales for a particular filing period (e.g., monthly, quarterly, annually)?

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.

Does the remote seller receive a discount for timely filing and remitting State and local Sales and Use Tax?

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.

South Carolina Purchasers

South Carolina Based Retailers

Sales & Use Tax Resources

Sales & Use Tax Manual
Sales Tax Exemptions
Sales to individuals 85 and over: RR18-10
Sales Tax Holiday
Use Tax for individuals: RR18-9
Tutorial: Sales & Use Tax: The Basics
Tutorial: Filing Sales Tax on MyDORWAY

Local sales and use tax resources

Tax law and policy:

Local Sales and Use Taxes (Chapter 12)
Local Sales and Use Tax Charts, Catawba Tribal Sales and Use Tax
Chart and Exemption Information (IL18-1)
Local Sales and Use Taxes and
Catawba Tribal Sales and Use Tax - Sales and Use Tax (RR18-15)

Local Tax Map

General Sales & Use Tax Rate	6%
Accommodations Tax Rate	7%
900 and 976 Tax Rate	11%
Manufactured Home	5% + 2% for amounts over $6,000
Maximum Tax Items	5% (Maximum Tax: $500 or $300)
Sales to Persons 85 and Older	5%

Remote sellers: Economic nexus and physical nexus with South Carolina

​Apply for a Retail License

See frequently asked que​​​​stions​​