South Carolina Sales Tax
As a seller of taxable goods and services, you must collect sales tax from your customers and remit the collected funds to the state. The state of South Carolina imposes a state sales tax of six percent. Counties and cities may levy additional taxes.
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Sales tax is a type of consumption tax levied by a state or local government on the sale of tangible personal property. South Carolina Sales Tax is 6% and several local rates, including county and city taxes. All retailers must understand how sales tax works in South Carolina to ensure compliance with state regulations and avoid penalties. A key component of South Carolina Sales Tax is nexus, which refers to a connection between a retailer and a state that requires the seller to collect and remit sales taxes on purchases made by customers within the state. Nexus can be physical or economic, and there are various ways to establish a nexus for sales tax purposes.
If you have sales tax nexus in the state, you must register with the Department of Revenue. Once registered, you must submit a return for each filing period, even if you didn’t sell anything in the state that month. The tax authority will audit your returns and compare them to your bank records to determine whether you paid the correct amount of sales and use taxes. Charges for shipping, handling, delivery, freight, and postage are taxable in the state of South Carolina if they are listed separately from the selling price of the tangible personal property sold.
South Carolina Sales Tax Registration
Many states require businesses that sell tangible goods to register for sales and use tax. The registration process usually involves submitting an online application and paying a fee. Some states also require businesses to incorporate or foreign qualify before registering for tax purposes. Other requirements vary by state. For example, South Carolina Sales Tax Registration requires business entities to provide an IRS-issued EIN as part of the registration process.
Once registered, businesses must file sales tax returns monthly, quarterly, or annually depending on their assigned filing frequency. Most states also have a due date for each reporting period. In general, the due date for a sales tax return is the 20th day of the month following the reporting period.
South Carolina is a destination-based state, so businesses must collect taxes based on the destination of the buyer’s purchase. This means that shipping charges must be included in the total taxable amount of the sale. Exceptions to this rule include meals served in care facilities for elderly or disabled individuals, and laundry and dry cleaning services.
South Carolina Sales Tax Due Dates
The due date for South Carolina sales tax returns falls on the 20th day of the month following the reporting period. This applies to all businesses, regardless of their filing frequency (monthly, quarterly, annually).
Filing and payment due dates vary between states, so knowing when your returns are due is important. Most sales tax accounts are assigned a monthly filing frequency, but you can also choose to file quarterly or annually.
If you are late with a return or payment, you will be subject to a 5% penalty. In addition, you will have to pay interest on any taxes that remain unpaid after the due date. For more information on these penalties, visit the South Carolina Department of Revenue website.
How to Pay South Carolina Sales Tax?
There are several ways to pay your South Carolina sales tax, depending on your preference and circumstances:
MyDORWAY: This is the recommended and preferred method by the South Carolina Department of Revenue (SCDOR). It’s a secure online portal where you can make payments using a credit card or electronic check (ACH debit). You can also manage all your tax accounts, file returns, calculate penalties and interest, and review return and payment history. Visit https://dor.sc.gov/ to access MyDORWAY.
Mail: You can send a check or money order with your completed sales tax return to the SCDOR address listed on the form. Make sure to check the correct address based on your filing frequency (monthly, quarterly, or annually).
In-Person: You can pay your sales tax in person at a participating financial institution or SCDOR office. Check the SCDOR website for a list of locations: https://dor.sc.gov/biz-services.
