Sales Tax 101 SC Shipping States

Is Shipping Taxable in South Carolina?

by Mark Faggiano

South Carolina Shipping Taxability

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?

Here’s what the South Carolina Department of Revenue has to say about sales tax on shipping charges:

South Carolina delivery charges taxable

This is a whole lot of legalese, but in short, 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. I.e. 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!)

Summary of Sales Tax on Shipping in South Carolina

In a nutshell, most online sellers should charge sales tax on shipping charges to customers in South Carolina.

Do you have questions or comments about sales tax on shipping in South Carolina? Start the conversation in the comments!

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  • Ms vickery

    I have a salesman who delivers orders from his warehouse to my business in his van. Is it legal for him to add tax to his delivery fee?

  • Ms vickery

    I have a salesman who delivers orders from his warehouse to my business in his van. Is it legal for him to add tax to his delivery fee?

  • Andrea Marano

    What if I am selling taxable clothes to South Carolina I charge them for the shipping but I arrange it? Shipping charges Come out of my account then charged as a seperate item in their sale. The above article confuses me.

    • Yes, you should charge sales tax on the shipping price of the item if you arrange it. If they arranged it (i.e. sent a courier or called up USPS to schedule delivery) then you wouldn’t need to charge them shipping or sales tax on that shipping charge. I hope this helps clarify!

      • Andrea Marano

        One last question, what if I decide to offer free shipping and I foot the bill I am assuming the customer regardless of state would not pay tax on shipping.

        Would I then be subject to laying the tax on shipping? If so would it go and be charged by the state by state breakdown as if they paid it or my state?

  • Toni Sloan Suchka

    What if the sales are out of state sales and shipping is on the invoice. Not marked up but just my cost of shipping. Do I charge SC sales tax just on the shipping but then not on the rest of the sale since it’s out of state?

    Also what about discounted jobs? Do I tax on the full amount or just the discounted amount?

    • If you are selling something to an out of state buyer then you’d only need to charge sales tax to them if you have nexus in the state of their ship to location. (More about nexus: http://taxjar.wpengine.com/sales-tax-nexus-definition/) And then, you’d need to check and see if that state requires sales tax on shipping and what their individual law is. (I understand this is totally confusing, which is why we’re trying to provide so much info here on the blog!)

      States also vary on discounts. We have a post about it here: http://taxjar.wpengine.com/sales-tax-discounts-coupons-promotions/

      I hope this points you in the right direction!

  • Reyna

    Hi, what if the items being shipped are tax exempt and a valid exemption certificate can be provided. Does this exemption pass to the freight charge for FOB destination and FOB orgin? As the buyer what tax responsibility would I have for the freight when it’s stated as a seperate line item?

    • Hi Reyna,

      Not sure about your responsibility as a buyer, but generally when the items being shipped are tax exempt the shipping is also tax exempt. This can get more tricky if they’re contracting a separate delivery or freight service to do the actual delivery. I recommend giving the SC Department of Revenue a call about your specific case: http://taxjar.wpengine.com/state-sales-tax-phone-numbers/ Good luck!

    • Hi Reyna,

      Not sure about your responsibility as a buyer, but generally when the items being shipped are tax exempt the shipping is also tax exempt. This can get more tricky if they’re contracting a separate delivery or freight service to do the actual delivery. I recommend giving the SC Department of Revenue a call about your specific case: http://taxjar.wpengine.com/state-sales-tax-phone-numbers/ Good luck!

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