As an e-commerce seller, you will need to collect sales tax in South Carolina if you have:
(1) gross revenue exceeds $100,000 in South Carolina in the previous or current calendar year (economic nexus), or
(2) Physical presence in South Carolina (physical nexus).
Below, we will highlight some of the basic provisions of South Carolina sales tax law.
What is the tax rate range for South Carolina?
State: South Carolina’s general sales tax rate is 6%.
Combined local: Local jurisdictions can range from 0% to 2%.
South Carolina Department of Revenue - Sales Tax Page
Do you have physical or economic nexus in South Carolina?
Physical nexus. Certain business activities create physical nexus in South Carolina. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to South Carolina. Examples of business activities that can create physical nexus in South Carolina include:
- Having an office or physical presence
- An employee present in the state
- Inventory or goods in a warehouse
- Delivery of merchandise in taxpayer-owned vehicles
- Ownership of personal property
Economic nexus. South Carolina recognizes economic nexus for any vendor that has gross revenue from sales of tangible personal property, products transferred electronically, and services delivered into South Carolina exceeding $100,000 in the previous or current calendar year.
- Sales you make through a marketplace are included in the nexus calculation
- Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state beginning on the first day of the second calendar month after the threshold is reached. For example, if you reach the threshold on December 10, 2022, you must register and collect sales tax on all sales on or after February 1, 2023.
South Carolina Sales and Use Tax Nexus
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Certain groceries
- Prescription drugs
- Medical devices
- Food (exempt from state tax only, subject to local tax)
South Carolina Sales & Use Tax Exemptions
Are there any sales tax holidays?
South Carolina recognizes an annual Sales Tax Free weekend in August. This holiday supports back-to-school efforts and applies to some clothing, accessories, shoes, backpacks, computers and school supplies.
South Carolina Sales Tax Free Weekend
Is South Carolina a member of the SST (Streamlined Sales Tax)?
Currently, South Carolina is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: South Carolina Department of Revenue - MyDORWAY.
For more information on South Carolina rates, see: South Carolina Sales Tax Rates.