When it comes to sales tax, there are a lot of things to take into account. For businesses operating in South Carolina, one important factor is whether or not the business needs to collect sales tax from customers.
In order for a business to be exempt from collecting sales tax in South Carolina, they must have a valid reseller certificate on file with the state. This means that the supplier of any goods or services sold by the business is responsible for charging and submitting sales tax to the state. The re-seller (the company) is still liable for paying any taxes due on their final sale, but they are not responsible for collecting them from their customers.
There are two ways to share a reseller’s certificate: either by submitting an existing certificate to the business or by creating a certificate on third-party platforms such as Avalara, Tax-exempt, etc.
If you are an owner of a valid reseller’s certificate and would like more information about how to submit it or validate it with your supplier.
South Carolina – https://dor.sc.gov/mydorway
Sales tax rate- 6.000%
Information required to register for a sales tax permit in the state of South Carolina
1) Owner, partnership, corporate charter name
2) Physical location
3) Mailing address
4) Type of business
5) Type of ownership
6) Names of business owner, partners, officers, and members
A resale tax exemption certificate is required to rent or purchase a property that falls within this category. This document is required to make such a purchase or rental, so it’s important to keep it on hand.
If you resell an item that you’ve purchased, you may need to report use taxes on the item. Use taxes are similar to sales taxes but apply only when merchandise is brought into your state for use there–not when it’s sold.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). In addition, the selling dealer can continue to sell tax-exempt products (for example, on a charge account or cash on delivery basis) to this customer.
A reseller certificate can be submitted by a business. The supplier or provider of the service/goods is not authorized to charge sales tax. If the final sales exceed $100, the responsibility for sales tax falls on the re-seller. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.
The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.
South Carolina is a state in the coastal Southeastern region of the United States. It is bordered to the north by North Carolina, to the southeast by the Atlantic Ocean, and to the southwest by Georgia across the Savannah River. South Carolina is the 40th most extensive and 23rd most populous U.S. state with a recorded population of 5,124,712 according to the 2020 census. In 2019, its GDP was $213.45 billion. South Carolina is composed of 46 counties. The capital is Columbia with a population of 133,273 in 2019; while its largest city is Charleston with a 2020 population of 150,277. The Greenville–Spartanburg-Anderson metropolitan area is the most populous in the state, with a 2018 population estimate of 906,626.
South Carolina was named in honor of King Charles I of England, who first formed the English colony, with Carolus being Latin for “Charles”. In 1712 the Province of South Carolina was formed. One of the Thirteen Colonies, South Carolina became a royal colony in 1719. During the American Revolution, South Carolina became part of the United States in 1776. South Carolina became the eighth state to ratify the U.S. Constitution on May 23, 1788. A slave state, it was the first state to vote in favor of secession from the Union on December 20, 1860. After the American Civil War, it was readmitted into the United States on July 9, 1868. During the early-to-mid 20th century, the state started to see economic progress as many textile mills and factories were built across the state. The civil rights movement of the mid-20th century helped in ending segregation and legal discrimination policies within the state. Economic diversification in South Carolina continued to pick up speed during and in the ensuing decades after World War II. In the early 21st century, South Carolina’s economy is based on industries such as aerospace, agribusiness, automotive manufacturing, and tourism.Source