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Can I collect sales tax from customers in different states without violating tax laws in South Carolina? What are the requirements?

To collect sales tax from customers in different states, you must comply with the tax laws of each state where you have customers. In South Carolina, the sales tax is imposed on retailers for the privilege of selling tangible personal property in the state [3.3].

Requirements for Retailers

Retailers making retail sales of tangible personal property for storage, use, or other consumption in South Carolina must collect and remit the tax in accordance with the South Carolina Sales and Use Tax Act and obtain a retail license from the Department of Revenue [2.1].

Nexus for Sales and Use Tax Purposes

A retailer is considered to have nexus with South Carolina for sales and use tax purposes if they maintain a place of business, qualify to do business, solicit and receive purchases or orders by an agent, an independent contractor, a representative, an Internet website, or any other means, distribute catalogs or other advertising matter, or operate as a marketplace facilitator [2.1]. Owning or utilizing a distribution facility within South Carolina is not considered in determining nexus with South Carolina for sales and use tax purposes [3.1][3.4].

Tax Liability for Property Delivered Out of State

If the seller delivers tangible personal property to the purchaser in a state other than South Carolina and receives from the purchaser a statement, given under oath, that the property was purchased for storage, use, or consumption outside of South Carolina and that the property will not be returned for storage, use, or consumption in South Carolina, the sales or use tax due on the transactions will be transferred to the purchaser [3.2].

Conclusion

To summarize, to collect sales tax from customers in different states, you must comply with the tax laws of each state where you have customers. In South Carolina, retailers must obtain a retail license and collect and remit the sales tax in accordance with the South Carolina Sales and Use Tax Act. A retailer is considered to have nexus with South Carolina for sales and use tax purposes if they maintain a place of business, qualify to do business, solicit and receive purchases or orders by an agent, an independent contractor, a representative, an Internet website, or any other means, distribute catalogs or other advertising matter, or operate as a marketplace facilitator. If the seller delivers tangible personal property to the purchaser in a state other than South Carolina, the sales or use tax due on the transactions will be transferred to the purchaser if certain conditions are met.

Source(s):
Jurisdiction

South Carolina