The SC Department of Revenue has approved and issued its Advisory Opinion, Revenue Ruling 18-14: Retailers Without a Physical Presence (“Remote Sellers”) – Economic Nexus, on Tuesday, Sept. 18. It specifically affects remote sellers, defined as the out-of-state retailers who have no physical presence in South Carolina.
The SC DOR provides written guidance for those with economic nexus with South Carolina on the application of the registration and tax collection requirements for the South Carolina Sales and Use Tax in the wake of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. (2018).
On June 21, the U.S. Supreme Court overturned the 1992 case of Quill v. North Dakota in South Dakota v. Wayfair, Inc., ruling that a remote seller may be required to collect and remit Sales and Use Taxes in states where they meet certain economic thresholds.
In South Carolina, the Economic Nexus Standard is defined as a remote seller whose gross revenue in the previous or current calendar year from sales of tangible personal property, products transferred electronically, and services delivered into South Carolina exceeds $100,000. Those who have economic nexus (substantial nexus) with South Carolina are responsible for obtaining a retail license and remitting South Carolina Sales and Use Tax.
The SC DOR has created the webpage dor.sc.gov/RemoteSellers that includes additional guidance and Frequently Asked Questions for remote sellers.