This guide to the South Carolina sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.
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| State taxing authority | South Carolina Department of Revenue |
|---|---|
| South Carolina base sales tax rate | 6% |
| Local tax rates | There can be up to 1% local sales tax rates within counties. |
| South Carolina sales tax rate | 6% + local sales tax rates |
| Tax threshold | $100,000 |
| Website | https://dor.sc.gov |
| Tax Line | 803-898-5000 |
The South Carolina sales tax rate 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.
The South Carolina state sales tax and local rates have remained the same. The rate has remained at 6% since 2007.
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Let’s now answer some of the commonly asked questions about 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.
The penalties for not paying South Carolina sales tax on time include:
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.
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.
Let’s now look at what creates nexus in South Carolina.
| Type of nexus | Threshold |
|---|---|
| Physical presence | Any physical presence in the state, such as: An office, store, warehouse, etc. Employees or representatives Owned real or tangible property |
| Economic nexus | $100,000 or more in sales during the current or previous calendar year |
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.
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.
Some exemptions from South Carolina sales tax include:
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.
Clothing and footwear are generally taxable in South Carolina. A sales tax holiday in August for clothing, computers, and school supplies.
Digital products like downloaded music, ebooks, and streaming services are subject to South Carolina sales tax.
Yes, SaaS and other charges to access or use software online are 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.
Now, look at the steps to collect sales tax in South Carolina.
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:
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.
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.
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.
SC sales tax returns can be filed online or by paper by the 20th day of the month following the reporting period.
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:
| Period | Due Date |
|---|---|
| January | February 20 |
| February | March 20 |
| March | April 20 |
| April | May 20 |
| May | June 20 |
| June | July 20 |
| July | August 20 |
| August | September 20 |
| September | October 20 |
| October | November 20 |
| November | December 20 |
| December | January 20 |
Quarterly:
| Period | Due Date |
|---|---|
| January – March | April 20 |
| April – June | July 20 |
| July – September | October 20 |
| October – December | January 20 |
Annual:
| Period | Due Date |
|---|---|
| January – December | February 20 |
Businesses that fail to file their South Carolina sales tax returns on time may be subject to penalties.
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.
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.
You still need to file a zero-tax return even if you did not collect any sales tax.
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.
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.
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.
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.
The South Carolina sales tax audit process is as follows:
During the audit, the SCDOR auditor will review your business records, including
The auditor will compare your records to your tax returns to verify you paid the correct sales tax.
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.
Here are the steps for registering 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:
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.
There is a $50 non-refundable registration fee for a South California sales tax license/seller’s permit..
For sales tax questions and appeals in South Carolina, contact:
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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