South Carolina sales tax for online sellers: nexus, permit and filing

What is the South Carolina sales tax rate?

The state rate is 6%. Counties add local taxes, so combined rates run from 6% to about 9%. Tax is charged at the rate for the delivery address, and the state collects the local taxes. Unprepared food is exempt from the state tax.

When does an online seller have to collect in South Carolina?

You must collect if you have a physical presence in South Carolina, such as staff, an office or inventory, or if your gross revenue from sales into South Carolina is more than $100,000 in the previous or current calendar year. There is no transaction-count test. Gross revenue is wide: it takes in taxable and exempt sales, wholesale sales and sales made through marketplaces. A seller who passes the threshold has about two months to get licensed and start collecting.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

South Carolina requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Apply online through MyDORWAY, the Department of Revenue's portal, for a retail license. The fee is $50 for each location, paid once, and the license does not need renewing. A seller below the threshold can register voluntarily. If you close the license and later need it again, the $50 is charged again. South Carolina is not a member of the Streamlined Sales Tax agreement, so you register with the state directly.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into South Carolina against its threshold.

2. Register before collecting

   With the South Carolina tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule South Carolina assigns, including zero returns where required.

How are returns filed?

Returns are filed through MyDORWAY and are due by the 20th of the month after the period. The Department assigns monthly, quarterly or annual filing based on the tax you collect. One return covers state and local taxes, with the local tax reported by county.

See how to file a sales tax return.

Why does gross revenue matter?

Because it brings sellers over the line sooner than a test based on taxable or direct sales. A seller with $70,000 of marketplace sales and $40,000 of website sales into South Carolina has $110,000 of gross revenue and has passed the threshold, even though the marketplace already collects tax on most of it. The seller then needs a retail license and collects on its website sales.

What if you may have had nexus in earlier years?

The Department of Revenue advises sellers who are unsure whether they had nexus in previous years to look at its voluntary disclosure program before applying for a retail license, since applying first can complicate things. See voluntary disclosure agreements.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.