South Carolina imposes various requirements on purchasers doing business in South Carolina. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.
Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.
Resale exemptions. The sales of tangible personal property to licensed retail merchants, jobbers, dealers, or wholesalers for resale are tax exempt as wholesale sales. If you are a purchaser of property or services under the resale exemption you must provide a resale certificate to the seller.
Resale exemption certificate. The resale certificate must include the purchaser's name, address, and the retail sales tax license number. State Form ST-8A, Resale Certificate, may be used in the state of South Carolina. Resale certificates are valid for one location as long as no change in ownership or location occurs.
Blanket resale certificates. In South Carolina it's not necessary that a resale certificate be obtained for each purchase. Only one resale certificate must be maintained per customer. However, the seller still has the responsibility of reexamining subsequent purchases to determine if they are for goods to be resold by the purchaser in accordance with the resale certificate that is on file.
Purchases from out-of-state vendors. In South Carolina, you are generally allowed a credit for sales or use tax paid in another state for tangible personal property used in South Carolina. The amount of the credit may not exceed the amount of the South Carolina tax.