SC South Carolina State sales tax rates
STATEWIDE SALES TAX RATE
ECONOMIC SALES THRESHOLD
Do you need to collect sales tax in South Carolina?
You’ll need to collect sales and use tax in South Carolina if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in South Carolina?
South Carolina considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business, or a physical presence
- An employee present
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in South Carolina in vehicles owned by the taxpayer
- Independent contractors or other representatives in South Carolina
Do you have economic nexus in South Carolina?
Effective November 1 ，2018, South Carolina considers vendors who make more than $100,000 in sales annually in the previous or current calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.
Is what you’re selling even taxable?
Services in South Carolina are generally not taxable. However – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Most tangible personal property is taxable in South Carolina, with a few exceptions. These sales tax exemptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in research and development.
Is SaaS taxable in South Carolina?
SaaS is considered a taxable service in South Carolina, as are other charges to access a website.
Collecting Sales Tax
South Carolina is a destination-based sales tax state. So if you live in South Carolina, collect sales tax at the rate at your buyer’s location. The South Carolina sales tax rate is 6%.
Should you collect sales tax on shipping charges in South Carolina?
If you charge for shipping as part of an order then shipping charges to South Carolina buyers are taxable.
When are Returns Due?
When you file and pay South Carolina sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in South Carolina?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In South Carolina, you will be required to file and remit sales tax either monthly, quarterly, or annually.
South Carolina sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.