Submitted by the South Carolina Department of Revenue
South Carolina’s 2022 Tax Free Weekend is August 5-7, and the South Carolina Department of Revenue (SCDOR) wants to help retailers prepare. Help your clients in retail make the most of the potential increased traffic by sharing the SCDOR’s Retailer Toolkit and reviewing important filing information.
What’s exempt from Sales Tax during Tax Free Weekend?
Tax-free items include computers, printers, school supplies, clothing and accessories, shoes, and certain bed and bath items. These tax-free items can be new or used and are tax-exempt regardless of price. Eligible items are exempt from both the 6% statewide Sales Tax and any local 1% Sales Taxes.
Quick tips for retailers:
- A Retailer Toolkit is available to help promote the holiday for your store. You’ll find social media graphics, sample posts, and FAQs at dor.sc.gov/retailer-toolkit.
- If you sell eligible items during the Sales Tax Holiday, you should not collect Sales Tax from your customers on eligible purchases.
- Review Revenue Ruling #19-4 for FAQs and Information Letter #22-10 for a list of exempt and non-exempt items.
- Don’t forget online sales of eligible items purchased in or shipped in to South Carolina during the holiday are tax free as well.
- Shopping lists are available at dor.sc.gov/taxfreeweekend. Consider printing relevant lists for your customers and passing them out before the weekend begins.
- Retail clients who advertise their Sales Tax Holiday deals on social media are encouraged to use the hashtag #SCtaxfree.
Reporting sales of eligible tax-free items:
- Sales of eligible tax-free items during the Sales Tax Holiday should be reported and taken as a deduction on your August Sales Tax return. Your August return is the return that is due by September 20.
- There are two ways for retailers to report sales during the Sales Tax Holiday:
- Filing Online: Log in to your MyDORWAY When filing your August Sales Tax return, enter the amount of exempt sales made during the Sales Tax Holiday as a deduction on the State Sales and Use Tax Worksheet. For the deduction type, select “Sales Tax Holiday exempt sales.”
- Filing by Paper: Report your total sales exempt during the Sales Tax Holiday on page 2, Item 4a of Form ST-3.
- Remember, the Sales Tax Holiday deduction code is only allowed on your August Sales Tax return, due in September.
A few more details for retailers to know:
- If a tax-exempt item is being delivered to the customer, the delivery charges associated with that item are also exempt.
- The exemption does not apply to items for use in a trade or business, items placed on layaway or a similar deferred payment and delivery plan, clothing and footwear rentals, cosmetics, eyewear, furniture, and jewelry.
- An eligible item must be purchased during the holiday to be exempt. So, if you sell an eligible item during the weekend using a rain check issued before the holiday, that item will be exempt. However, if you issue a rain check during the holiday, the purchase is not exempt if it is made after August 7.
Share this information with your retail clients to help them through the Tax Free Weekend! For more information, visit dor.sc.gov/taxfreeweekend.