Any business that sells goods or taxable services within the state of South Carolina to customers located in South Carolina is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in South Carolina must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in South Carolina State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in South Carolina
- You have a distribution location such as a storage area or warehouse space with goods
- You have employees physically present in South Carolina (including independent contractors, sales persons, representatives, or agents)
- Your business owns real or personal property
- Your business delivers merchandise in South Carolina with company owned vehicles
- Your business has taxable services in the state of South Carolina
What constitutes taxable services in South Carolina State?
The majority of service businesses are not taxable in South Carolina. The exceptions would be if your business fabricates or manufactures a good or product
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of South Carolina?
As a wholesale company conducting business in the state of South Carolina, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable even if you exclude it from the purchase price of the item being sold. Although, if a purchaser arranges their own shipping then the seller cannot charge sales tax on the item
Is there sales tax on drop shipments in the state of South Carolina?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in South Carolina are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain chemicals used in research and development, medical devices and prescription medicines, certain machinery, and groceries are tax exempt.
Register for a South Carolina sales/use tax number
South Carolina state, county, city, & municipal tax rate table