Key Points in the South Carolina Economic Nexus

Radhika Akhil
January 20, 2021

The South Dakota v. Wayfair, Inc. decision pushed changes in many state economic nexus laws, including in South Carolina. The state enacted regulation similar to what was laid out in South Dakota, but there are a few key differences. We have outlined those important changes in the following blog post.

Enforcement date:
November 1, 2018.

Sales/transactions threshold:
$100,000.

Measurement period:
Threshold applies to calendar year 2017 onwards.

Included transactions/sales:
Retail sales of tangible personal property, products transferred electronically and all services delivered into the state.

When You Need to Register Once You Exceed the Threshold:
Remote sellers that met South Carolina’s economic nexus standard in calendar year 2017, or from January 1, 2018 through September 30, 2018, must obtain a retail license from the South Carolina Department of Revenue (DOR) and remit state sales and use taxes for all taxable sales (deliveries) beginning November 1, 2018.  

Remote sellers that meet the state’s economic nexus standard on or after October 1, 2018, must obtain a retail license from DOR and remit sales and use Taxes beginning the first day of the second calendar month after economic nexus is established. 

Summary: Remote sellers (e.g. marketplace, online, catalog or mail order retailers) must collect South Carolina sales tax when their gross revenue exceeds $100,000 in 2017 or later calendar years. Similarly, these same rules apply to any related entity assisting the remote seller in sales, storage, distribution, payment collection or in any other manner with respect to the remote seller.

Remote sellers and marketplace facilitators should work with the right partner to ensure that even as regulations change, they remain current and compliant with all economic nexus requirements.

South Carolina Sales Tax Resources: For more information on the South Carolina economic nexus, reach out to our team. The Sovos interactive sales tax nexus map is another great resource, with real-time updates on each state.

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Radhika Akhil

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