Is shipping taxable in South Carolina?
by January 21, 2024
Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
Sales tax is complicated, and one of the more complicated aspects of dealing with sales tax is determining whether you should charge sales tax on the shipping amounts that you charge to your customers. Today we’ll look at sales tax on shipping in South Carolina.
Is shipping taxable in South Carolina?
If you – the seller – pay to ship the item then you should charge sales tax to the buyer based on the price of the item. For example, if you’re an online seller and you pay UPS to send the goods to the buyer, charge sales tax on shipping. On the other hand, if the buyer arranges a shipping method, then the seller wouldn’t charge sales tax on shipping. (Which, to us, makes perfect sense, since it doesn’t appear that the seller would be involved in that transaction!)
Handling South Carolina shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common South Carolina scenario – that shipping and handling is taxable. However, if your business does not charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the South Carolina Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to not charge sales tax on South Carolina shipping. Learn more about how TaxJar treats shipping and handling here. To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaway
In a nutshell, most online sellers should charge sales tax on shipping charges to customers in South Carolina.
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Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
