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by TaxJar November 10, 2024
If you are buying products to resell in the state of South Carolina, you can avoid paying sales tax on that purchase by presenting your South Carolina resale certificate.
It’s important to note that you should only use a South Carolina resale certificate if you truly intend to resell, lease or rent the items or use them as parts or ingredients in products for resale. It is illegal to use a resale certificate for purchases you intend to use yourself.
Here’s what you need to know as a seller about using a South Carolina resale certificate, or if one of your customers presents a South Carolina resale certificate to you.
You can find a blank South Carolina resale certificate here .
You are allowed to use this certificate to buy items tax free as long as you fill the form out wholly and correctly and you truly intend to sell, lease or rent the items you are purchasing tax free. (Don’t skip this step! You can be held legally liable if you buy items tax free but don’t sell them. Fortunately, if you find yourself unable to sell items, you’re off the hook if you remit South Carolina use tax on the items later.)
The South Carolina resale certificate requires a sales tax registration number, but doesn’t necessarily require you to be registered in the state of South Carolina. So if you’re registered in another state, you can use that number instead.
You can find out more about South Carolina resale certificates at their sales tax FAQ .
Also keep in mind that if you have a South Carolina sales tax permit , you are required to collect sales tax from your South Carolina buyers .
You are responsible for a few things when it comes to accepting a South Carolina resale certificate from a buyer. If you fail to do any of these things and face an audit, you will be the party on the hook for fines and penalties. But luckily, these are all easy to do!
Ready to automate sales tax? To learn more about TaxJar and get started, visit TaxJar.com/product .
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