Running a business in South Carolina? This South Carolina sales tax guide will help you understand their tax system and avoid paying penalties due to incorrect filings. Let’s get started.
South Carolina sales tax at a glance
South Carolina sales tax rates & calculations in 2023
The South Carolina sales tax rate in 2023 is 6%. This comprises a base rate of 6% with no additional local rates. The total tax rate is 6% statewide. However, some counties may impose a 1% tax.
Recent tax rate changes in South Carolina
The South Carolina state sales tax and local rates have remained the same. The rate has remained at 6% since 2007.
FAQs
Let’s now answer some of the commonly asked questions about South Carolina sales tax.
How do you calculate South Carolina sales tax?
To calculate South Carolina sales tax, you can use the following formula:
Sales tax = (Purchase price x 6) * 100
For instance, if the purchase price is $100, the sales tax would be $6. SC does not have local taxes, so we do not need to consider them.
What are the penalties for not paying South Carolina sales tax?
The penalties for not paying South Carolina sales tax on time include:
- Interest of 5% per month up to a maximum of 25%
- Late filing penalty of 5% per month up to a maximum of 25%
- Negligence penalty of 10% of any tax not paid
What’s the difference between destination-based and origin-based sales tax states?
South Carolina is a destination-based sales tax state. This means the sales tax rate is based on where the customer receives the product. Origin-based sales tax states base the tax rate on the seller's location.
Is South Carolina a streamlined sales tax state?
South Carolina is not a Streamlined Sales Tax state. The Streamlined Sales and Use Tax Agreement (SSUTA) aims to simplify sales tax collection across member states, but South Carolina still needs to adopt the agreement.
Sales tax nexus and registration in South Carolina
Let’s now look at what creates nexus in South Carolina.
Sales tax nexus table in South Carolina
FAQs
Do I need a South Carolina seller's permit if I’m only a wholesaler?
Yes, wholesalers in South Carolina need a retail license if they make sales at retail in addition to wholesale. Pure wholesalers that make no retail sales can apply for a wholesale license.
Do I need a South Carolina seller's permit if I only sell temporarily in the state?
If you sell in South Carolina, even temporarily, you likely need a South Carolina seller's permit. The Department of Revenue looks at factors like the frequency, nature, and value of sales to determine if a permit is required.
Exemptions from sales tax in South Carolina
Some exemptions from South Carolina sales tax include:
- Most groceries
- Prescription drugs
- Prosthetic devices
- Electricity for residential use
- Manufacturing machines
- Some charities
FAQs
Are groceries taxable in South Carolina?
Most groceries in South Carolina are exempt from sales tax, including meat, poultry, fish, eggs, bread, fruits, vegetables, dairy products, etc. Some prepared foods are taxable.
Is clothing taxable in South Carolina?
Clothing and footwear are generally taxable in South Carolina. A sales tax holiday in August for clothing, computers, and school supplies.
Are digital products taxable in South Carolina?
Digital products like downloaded music, ebooks, and streaming services are subject to South Carolina sales tax.
Is software-as-a-service (SaaS) taxable in South Carolina?
Yes, SaaS and other charges to access or use software online are taxable in South Carolina.
Are services taxable in South Carolina?
Generally, services are not subject to sales tax in South Carolina. However, any tangible personal property involved in the service is taxable.
Collecting sales tax in South Carolina
Now, look at the steps to collect sales tax in South Carolina.
How to collect sales tax in South Carolina if you are not based in South Carolina (Out-of-State)
As a remote seller with no physical presence in South Carolina, you may still have economic nexus based on your sales volume. Remote sellers with over $100,000 in sales delivered to South Carolina must register and collect South Carolina sales tax.
Other ways remote sellers can have nexus include:
- Having employees, agents, or inventory located in South Carolina
- Making sales through a South Carolina-based marketplace
- Having affiliate relationships with South Carolina residents.
Register for a South Carolina retail license online through the Department of Revenue's portal. Once you obtain the retail permit in South Carolina, you need to collect and remit sales tax on taxable sales delivered into the state, even if you don’t have a physical location in South Carolina.
Should you collect sales tax on shipping charges in South Carolina?
If your product sale is subject to South Carolina sales tax, the shipping charges are also typically taxable. The shipping charges will be exempt only if the sale itself is exempt.
Filing and paying sales taxes in South Carolina
Every state has a different filing frequency requirement, depending on the amount of sales tax you collect throughout the year. All businesses with a South Carolina retail license must file sales tax returns, even if no tax is due. Returns must be filed online or by paper by the 20th day of the month following the reporting period.
Return filing schedule and due dates in South Carolina
The South Carolina Department of Revenue assigns monthly, quarterly, or annual filing frequency based on the business's sales volume.
The following due dates apply to South Carolina sales tax returns:
Monthly:
Quarterly:
Annual:
Filing penalties in South Carolina
Businesses that fail to file their South Carolina sales tax returns on time may be subject to penalties.
- For late filings, there is a 5% monthly penalty up to 25% of the tax due.
- For incorrect tax filings, there is a 10% negligence penalty.
When are returns due in South Carolina?
Returns are due by the 20th day of the month following the reporting period end date.
For example, if the period ends March 31, the return is due April 20. For the December 31 period, returns are due January 20.
FAQs
What are the South Carolina sales tax due dates?
For monthly filers, South Carolina sales tax is due on the 20th of the following month. Quarterly filers must pay by the 20th of April, July, October, and January. Annual filers must pay by January 20.
I didn’t collect any South Carolina sales tax during this period. Do I still need to file a return?
You still need to file a zero-tax return even if you did not collect any sales tax.
Can I get an extension on filing my South Carolina sales tax return?
You can submit a written request for an extension to file your South Carolina sales tax return by the original due date. However, this does not extend the time to pay any tax due.
Can I amend a South Carolina sales tax return?
You can file an amended return in South Carolina to correct errors or report additional tax due. You will need to pay any additional tax plus applicable interest and penalties.
What is the penalty for filing a South Carolina sales tax late?
South Carolina has a 5% monthly penalty of up to 25% of the tax due for late filings. There is also a 10% negligence penalty for incorrect filings.
Audit and appeals process in South Carolina
The audit & appeals process is a series of steps a business must go through if audited by the South Carolina Department of Revenue (SCDOR).
The process begins with the auditor contacting the business to schedule an audit. The auditor will review the business's records and tax returns to determine if sales tax was not paid.
If the auditor finds any discrepancies, they will report their findings. The business then has the opportunity to appeal the findings. The business can further appeal to the South Carolina Administrative Law Court if the appeal is denied.
South Carolina sales tax audit process
The South Carolina sales tax audit process is as follows:
- The auditor initiates contact and schedules the audit.
- Auditor reviews records and tax returns.
- Auditor issues report on findings
- Businesses can appeal audit findings.
- If the appeal is denied, a business can further appeal to the Administrative Law Court
What to expect during the audit?
During the audit, the SCDOR auditor will review your business records, including
- Sales tax returns
- Invoices, bills, contracts
- Resale, and exemption certificates
- Bank statements, and books of account
- Other relevant business records
The auditor will compare your records to your tax returns to verify you paid the correct sales tax.
After the audit – Appealing the results
If you disagree with the auditor's findings, you can submit a written protest within 90 days. The SCDOR Appeals Department will review your protest. You may also request a conference.
If your appeal is denied, you can appeal to the South Carolina Administrative Law Court within 30 days.
Sales tax registration in South Carolina
Here are the steps for registering for sales tax in South Carolina:
How to register for sales tax in South Carolina
To register for sales tax in South Carolina, you can apply online through the MyDORWAY website. You will need to provide:
- Your business information
- Ownership information
- Social Security Number or EIN
- Description of business activities
- Projected monthly sales
Enter the details as the website asks from you and complete the steps for registration. You will be required to pay a $50 non-refundable registration fee for the same. Once your sales tax license is approved, you will be able to collect and remit taxes within the state.
Cost of registration for a South Carolina sales tax license
There is a $50 non-refundable registration fee for a South California sales tax license/seller’s permit..
More information
For sales tax questions and appeals in South Carolina, contact:
- South Carolina Department of Revenue
- Phone number: 803-898-5000
- Website: dor.sc.gov
There you have it—a comprehensive guide on South Carolina's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
South Carolina sales tax at a glance
South Carolina sales tax rates & calculations in 2023
The South Carolina sales tax rate in 2023 is 6%. This comprises a base rate of 6% with no additional local rates. The total tax rate is 6% statewide. However, some counties may impose a 1% tax.
Recent tax rate changes in South Carolina
The South Carolina state sales tax and local rates have remained the same. The rate has remained at 6% since 2007.
FAQs
Let’s now answer some of the commonly asked questions about South Carolina sales tax.
How do you calculate South Carolina sales tax?
To calculate South Carolina sales tax, you can use the following formula:
Sales tax = (Purchase price x 6) * 100
For instance, if the purchase price is $100, the sales tax would be $6. SC does not have local taxes, so we do not need to consider them.
What are the penalties for not paying South Carolina sales tax?
The penalties for not paying South Carolina sales tax on time include:
- Interest of 5% per month up to a maximum of 25%
- Late filing penalty of 5% per month up to a maximum of 25%
- Negligence penalty of 10% of any tax not paid
What’s the difference between destination-based and origin-based sales tax states?
South Carolina is a destination-based sales tax state. This means the sales tax rate is based on where the customer receives the product. Origin-based sales tax states base the tax rate on the seller's location.
Is South Carolina a streamlined sales tax state?
South Carolina is not a Streamlined Sales Tax state. The Streamlined Sales and Use Tax Agreement (SSUTA) aims to simplify sales tax collection across member states, but South Carolina still needs to adopt the agreement.
Sales tax nexus and registration in South Carolina
Let’s now look at what creates nexus in South Carolina.
Sales tax nexus table in South Carolina
FAQs
Do I need a South Carolina seller's permit if I’m only a wholesaler?
Yes, wholesalers in South Carolina need a retail license if they make sales at retail in addition to wholesale. Pure wholesalers that make no retail sales can apply for a wholesale license.
Do I need a South Carolina seller's permit if I only sell temporarily in the state?
If you sell in South Carolina, even temporarily, you likely need a South Carolina seller's permit. The Department of Revenue looks at factors like the frequency, nature, and value of sales to determine if a permit is required.
Exemptions from sales tax in South Carolina
Some exemptions from South Carolina sales tax include:
- Most groceries
- Prescription drugs
- Prosthetic devices
- Electricity for residential use
- Manufacturing machines
- Some charities
FAQs
Are groceries taxable in South Carolina?
Most groceries in South Carolina are exempt from sales tax, including meat, poultry, fish, eggs, bread, fruits, vegetables, dairy products, etc. Some prepared foods are taxable.
Is clothing taxable in South Carolina?
Clothing and footwear are generally taxable in South Carolina. A sales tax holiday in August for clothing, computers, and school supplies.
Are digital products taxable in South Carolina?
Digital products like downloaded music, ebooks, and streaming services are subject to South Carolina sales tax.
Is software-as-a-service (SaaS) taxable in South Carolina?
Yes, SaaS and other charges to access or use software online are taxable in South Carolina.
Are services taxable in South Carolina?
Generally, services are not subject to sales tax in South Carolina. However, any tangible personal property involved in the service is taxable.
Collecting sales tax in South Carolina
Now, look at the steps to collect sales tax in South Carolina.
How to collect sales tax in South Carolina if you are not based in South Carolina (Out-of-State)
As a remote seller with no physical presence in South Carolina, you may still have economic nexus based on your sales volume. Remote sellers with over $100,000 in sales delivered to South Carolina must register and collect South Carolina sales tax.
Other ways remote sellers can have nexus include:
- Having employees, agents, or inventory located in South Carolina
- Making sales through a South Carolina-based marketplace
- Having affiliate relationships with South Carolina residents.
Register for a South Carolina retail license online through the Department of Revenue's portal. Once you obtain the retail permit in South Carolina, you need to collect and remit sales tax on taxable sales delivered into the state, even if you don’t have a physical location in South Carolina.
Should you collect sales tax on shipping charges in South Carolina?
If your product sale is subject to South Carolina sales tax, the shipping charges are also typically taxable. The shipping charges will be exempt only if the sale itself is exempt.
Filing and paying sales taxes in South Carolina
Every state has a different filing frequency requirement, depending on the amount of sales tax you collect throughout the year. All businesses with a South Carolina retail license must file sales tax returns, even if no tax is due. Returns must be filed online or by paper by the 20th day of the month following the reporting period.
Return filing schedule and due dates in South Carolina
The South Carolina Department of Revenue assigns monthly, quarterly, or annual filing frequency based on the business's sales volume.
The following due dates apply to South Carolina sales tax returns:
Monthly:
Quarterly:
Annual:
Filing penalties in South Carolina
Businesses that fail to file their South Carolina sales tax returns on time may be subject to penalties.
- For late filings, there is a 5% monthly penalty up to 25% of the tax due.
- For incorrect tax filings, there is a 10% negligence penalty.
When are returns due in South Carolina?
Returns are due by the 20th day of the month following the reporting period end date.
For example, if the period ends March 31, the return is due April 20. For the December 31 period, returns are due January 20.
FAQs
What are the South Carolina sales tax due dates?
For monthly filers, South Carolina sales tax is due on the 20th of the following month. Quarterly filers must pay by the 20th of April, July, October, and January. Annual filers must pay by January 20.
I didn’t collect any South Carolina sales tax during this period. Do I still need to file a return?
You still need to file a zero-tax return even if you did not collect any sales tax.
Can I get an extension on filing my South Carolina sales tax return?
You can submit a written request for an extension to file your South Carolina sales tax return by the original due date. However, this does not extend the time to pay any tax due.
Can I amend a South Carolina sales tax return?
You can file an amended return in South Carolina to correct errors or report additional tax due. You will need to pay any additional tax plus applicable interest and penalties.
What is the penalty for filing a South Carolina sales tax late?
South Carolina has a 5% monthly penalty of up to 25% of the tax due for late filings. There is also a 10% negligence penalty for incorrect filings.
Audit and appeals process in South Carolina
The audit & appeals process is a series of steps a business must go through if audited by the South Carolina Department of Revenue (SCDOR).
The process begins with the auditor contacting the business to schedule an audit. The auditor will review the business's records and tax returns to determine if sales tax was not paid.
If the auditor finds any discrepancies, they will report their findings. The business then has the opportunity to appeal the findings. The business can further appeal to the South Carolina Administrative Law Court if the appeal is denied.
South Carolina sales tax audit process
The South Carolina sales tax audit process is as follows:
- The auditor initiates contact and schedules the audit.
- Auditor reviews records and tax returns.
- Auditor issues report on findings
- Businesses can appeal audit findings.
- If the appeal is denied, a business can further appeal to the Administrative Law Court
What to expect during the audit?
During the audit, the SCDOR auditor will review your business records, including
- Sales tax returns
- Invoices, bills, contracts
- Resale, and exemption certificates
- Bank statements, and books of account
- Other relevant business records
The auditor will compare your records to your tax returns to verify you paid the correct sales tax.
After the audit – Appealing the results
If you disagree with the auditor's findings, you can submit a written protest within 90 days. The SCDOR Appeals Department will review your protest. You may also request a conference.
If your appeal is denied, you can appeal to the South Carolina Administrative Law Court within 30 days.
Sales tax registration in South Carolina
Here are the steps for registering for sales tax in South Carolina:
How to register for sales tax in South Carolina
To register for sales tax in South Carolina, you can apply online through the MyDORWAY website. You will need to provide:
- Your business information
- Ownership information
- Social Security Number or EIN
- Description of business activities
- Projected monthly sales
Enter the details as the website asks from you and complete the steps for registration. You will be required to pay a $50 non-refundable registration fee for the same. Once your sales tax license is approved, you will be able to collect and remit taxes within the state.
Cost of registration for a South Carolina sales tax license
There is a $50 non-refundable registration fee for a South California sales tax license/seller’s permit..
More information
For sales tax questions and appeals in South Carolina, contact:
- South Carolina Department of Revenue
- Phone number: 803-898-5000
- Website: dor.sc.gov
There you have it—a comprehensive guide on South Carolina's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
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About the author
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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