The standard rate VAT in South Carolina is 6%.
Who is obliged to register sales tax
Any business that has a physical presence in the state of South Carolina or has met the threshold must register and pay sales tax.
The special rules are applicable to the SAAS business.
A marketplace facilitator is the retailer and is responsible for remitting state and local sales and use tax for all products sold via its marketplace unless otherwise exempt or excluded from the tax.
The fee for each tax license is $50.
Sales tax payment and filing date
Tax returns must be filed by the 20th of the month following the tax period.
Penalty and interest
- Failure to file – penalty at the rate of 5% of the taxes due for each month, or path of a month, the return is late;
- Failure to pay – penalty at the rate of 0.5% of the taxes due for every month, or path of a month, the taxes are late.
If returns are filed and the taxes are paid in full by the due date, the taxpayer is allowed a discount on taxes due. If the amount of taxes is less than $100, then the discount is 3% of the tax. If the amount of taxes is more than $100, then the discount is 2% of the tax.
The maximum discount provided per taxpayer during the state’s fiscal year (July 1 – June 30) is $3,000 or $3,100 if the retailer files his Sales and Use Tax returns electronically.