Effective Date: November 1, 2018
Measurement Date: Previous or current calendar year
Includable Transactions: Gross sales
When You Need to Register Once You Exceed the Threshold: The first day of the second calendar month after economic nexus is established
The South Carolina Department of Revenue will require remote sellers to collect and remit sales if they exceed the state’s economic nexus threshold, effective November 1, 2018. Following a public comment period in August, the Department of Revenue released SC Revenue Ruling #18-14 to provide guidance to retailers without a physical presence in South Carolina. The state previously had a provision that would have allowed the state to require remote sellers without a physical presence to collect but was not enforcing the provision. Following the South Dakota v. Wayfair decision, the state has changed its position and will begin enforcement.
South Carolina defines a remote seller as a seller with no physical presence in the state, such as a marketplace, online, catalog, or mail order retailer. In addition, a remote seller includes any related entity assisting the remote seller in activities like sales, distribution, or payment collection. A related entity, such as a marketplace facilitator, is required to obtain a retail license and collect and remit sales and use tax on the marketplace’s gross proceeds of sales.
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October 29, 2018