The need to collect sales tax in South Carolina is predicated on having a significant connection with the state. This is a concept known as nexus. Sales tax nexus in all states used to be limited to physical presence: A state could require a business to register and collect and remit sales tax only if it had a physical presence in the state, such as employees or an office, retail store, or warehouse. Wayfair, Inc. States are now free to tax businesses based on their economic and virtual connections to the state, or economic nexus.
Out-of-state sellers with no physical presence in a state may establish sales tax nexus in the following ways:. Affiliate nexus : Having ties to businesses or affiliates in South Carolina.
Click-through nexus : Having an agreement to reward a person s in the state for directly or indirectly referring potential purchasers of goods through an internet link, website, or otherwise. At this time, South Carolina has not enacted a click-through nexus law. Economic nexus : Having a certain amount of economic activity in the state.
Inventory in the state : Storing property for sale in the state. Marketplace sales : Making sales through a marketplace. Effective April 26, , in-state marketplace facilitators and remote facilitators with economic nexus are responsible for collecting and remitting sales tax on behalf of marketplace sellers in South Carolina. Trade shows : Attending conventions or trade shows in South Carolina. You may be liable for collecting and remitting South Carolina use tax on orders taken or sales made during South Carolina conventions or trade shows.
However, a remote seller can establish nexus through trade show activity if an employee is in the state for at least four days in a month period.
This is known as trailing nexus. As of October , South Carolina does not have an explicitly defined trailing nexus policy. If you sell taxable goods to South Carolina residents and have inventory stored in the state, you likely have nexus and an obligation to collect and remit tax. To begin to understand your unique nexus obligations, check out our free economic nexus tool or consult with a trusted tax advisor.
In some states, sales tax rates, rules, and regulations are based on the location of the seller and the origin of the sale origin-based sourcing. In others, sales tax is based on the location of the buyer and the destination of the sale destination-based sourcing. South Carolina is a destination-based state. After determining you have sales tax nexus in South Carolina, you need to register with the proper state authority and collect, file, and remit sales tax to the state.
We get a lot of questions about this and recognize it may be the most difficult hurdle for businesses to overcome. Avalara Licensing can help you obtain your South Carolina business license and sales tax registration. You must register with the South Carolina Department of Revenue if you acquire an existing business in South Carolina. Once you've successfully registered to collect South Carolina sales tax, you'll need to apply the correct rate to all taxable sales, remit sales tax, file timely returns with the South Carolina Department of Revenue, and keep excellent records.
Brick-and-mortar store: Have a physical store? Brick-and-mortar point-of-sale solutions allow users to set the sales tax rate associated with the store location.
New tax groups can then be created to allow for specific product tax rules. Hosted store: Hosted store solutions like Shopify and Squarespace offer integrated sales tax rate determination and collection. Hosted stores offer sellers a dashboard environment where South Carolina sales tax collection can be managed. Marketplace: Marketplaces like Amazon and Etsy offer integrated sales tax rate determination and collection, usually for a fee.
As with hosted stores, you can set things up from your seller dashboard and let your marketplace provider do most of the heavy lifting. Mobile point of sale: Mobile point-of-sale systems like Square rely on GPS to determine sale location. The appropriate tax rate is then determined and applied to the order. Specific tax rules can be set within the system to allow for specific product tax rules. South Carolina sales tax collection can be automated to make your life much easier. Avalara AvaTax seamlessly integrates with the business systems you already use to deliver sales and use tax calculations in real time.
Some goods are exempt from sales tax under South Carolina law. Examples include most non-prepared food items, prescription drugs, and medical supplies.
We recommend businesses review the laws and rules put forth by the South Carolina Department of Revenue to stay up to date on which goods are taxable and which are exempt, and under what conditions.
Some customers are exempt from paying sales tax under South Carolina law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction. In some cases, late fees and interest will be applied and can result in large, unexpected bills. Sales tax holidays exempt specific products from sales and use tax for a limited period, usually a weekend or a week.
Approximately 17 states offer sales tax holidays every year. The holiday applies to both state and local sales taxes; there are no price restrictions on eligible goods. You're registered with the South Carolina Department of Revenue and you've begun collecting sales tax. Remember, those tax dollars don't belong to you. As an agent of the state of South Carolina, your role is that of intermediary to transfer tax dollars from consumers to the tax authorities.
The South Carolina Department of Revenue will then distribute it appropriately. Filing a South Carolina sales tax return is a two-step process comprised of submitting the required sales data filing a return and remitting the collected tax dollars if any via the MyDORWAY web portal. The filing process requires filers to detail total sales in the state, the amount of sales tax collected and the location of each sale.
Online filing is generally recommended, but paper returns are acceptable. The South Carolina Department of Revenue will assign you a filing frequency. Typically, this is determined by the size or sales volume of your business. State governments generally ask larger businesses to file more frequently. See the filing due dates section for more information.
South Carolina sales tax returns and payments must be remitted at the same time; both have the same due date. You may file directly with the South Carolina DOR by visiting their site and entering your transaction data manually. This is a free service, but preparing South Carolina sales tax returns can be time-consuming — especially for larger sellers.
To save time and avoid costly errors, many businesses outsource their sales and use tax filing to an accountant, bookkeeper, or sales tax automation company like Avalara. This is a normal business practice that can save business owners time and help them steer clear of costly mistakes due to inexperience and a lack of deep knowledge about Missouri sales tax code.
Avalara Returns for Small Business is an affordable third-party solution that helps business owners simplify the sales tax returns process and stay focused on growing their business. Learn how automating the sales tax returns process could help your business. See our offer to try Returns for Small Business free for up to 60 days. Terms and conditions apply. When no sales tax was collected, you must file a "zero return. Failure to submit a zero return can result in penalties and interest charges.
The South Carolina DOR requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business. Many states encourage the timely or early filing of sales and use tax returns with a timely filing discount.
It's important to know the due dates associated with the filing frequency assigned to your business by the South Carolina Department of Revenue. This way you'll be prepared and can plan accordingly. Sales tax rates for the U. At-a-glance rates for each state. Free economic nexus assessment Find out where you may have sales tax obligations Tool. Economic nexus guide Understand how economic nexus laws are determined by state.
State sales tax laws See which nexus laws are in place for each state. Nexus resources Learn about sales tax nexus and how to comply with the rules. Avalara Commerce Monitor U.
Resource center Sales and use tax, nexus, Wayfair. Events Join us virtually or in person at Avalara events and conferences hosted by industry leaders. Webinars Watch live and on-demand sessions covering a broad range of tax compliance topics.
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Find a partner. Developers Preferred Avalara integration developers. Accountants State and local tax experts across the U. Certified Implementation Partners Recommended Avalara implementation partners. Why Avalara. Streamlined Sales Tax Program. Customer stories. Avalara for Startups. Resource center. Free tax tools. Sales tax calculator. Sales tax rate tables. Check your nexus tool.
Tax Audit guide. Sales tax laws by state. Get a quick rate range. Download state rate tables. Get a free download of average rates by ZIP code for each state you select. Get rate tables. Automate calculation. Let Avalara AvaTax calculate rates in real time. Explore AvaTax. Sales tax returns made easy for small businesses. See our free trial. Improve accuracy with rates based on address.
Look up the current rate for a specific address using the same technology that powers the Avalara AvaTax rate calculation engine. Determine Rates. Use my current location. Why can't I just use the ZIP code? There are often multiple sales tax rates per ZIP code, county, and city. ZIP codes often overlap, or become subsets of other ZIP codes, or represent no geographic region at all.
ZIP codes aren't stable. Your sales tax rate. Jurisdiction Breakdown. Sumter County. Union County. Williamsburg County. Greenville, SC. Charleston, SC. Columbia, SC. Summerville, SC. Rock Hill, SC. Spartanburg, SC. Myrtle Beach, SC. Simpsonville, SC. Mount Pleasant, SC. Goose Creek, SC.
North Charleston, SC. Florence, SC. Hilton Head Island, SC. Orangeburg, SC. Sumter, SC. Bluffton, SC. Easley, SC. North Augusta, SC. Moncks Corner, SC. West Columbia, SC. Hartsville, SC. Greenwood, SC. Murrells Inlet, SC. Fort Mill, SC. Georgetown, SC. Aiken, SC. Darlington, SC. Boiling Springs, SC. Walterboro, SC. Laurens, SC. Travelers Rest, SC. Fountain Inn, SC. Johns Island, SC. Beaufort, SC. Blythewood, SC.
Little River, SC. North Myrtle Beach, SC. Bennettsville, SC. Dillon, SC. Pawleys Island, SC. Mauldin, SC. Hanahan, SC. Westminster, SC. Williamston, SC.
Ladys Island, SC. Timmonsville, SC. Bishopville, SC. Gray Court, SC. Clemson, SC. Saint Helena Island, SC. Honea Path, SC. Blacksburg, SC. Prosperity, SC. Campobello, SC. Saint Matthews, SC. Pendleton, SC. Graniteville, SC. Ridgeville, SC. Hollywood, SC. Hardeeville, SC. Mc Cormick, SC. Ninety Six, SC. Saint Stephen, SC.
Saint George, SC. Edgefield, SC. Warrenville, SC. Beech Island, SC. Holly Hill, SC. Chesterfield, SC. Johnsonville, SC.
Isle Of Palms, SC. Ware Shoals, SC.
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