South Carolina Sales Tax Guide for SaaS and E-Commerce Businesses 2025

South Carolina imposes a 6% state sales & use tax on taxable sales. Local option sales taxes may apply depending on the delivery location. See SCDOR’s overview: Sales Tax.

This guide explains South Carolina’s treatment of SaaS, digital products (downloads vs. streaming), economic nexus, marketplace facilitators, sourcing, and filing rules, with citations to SCDOR rulings, notices, and forms.

Last updated: September 2025

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Quick Reference: South Carolina Sales & Use Tax (2025)

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SaaS & Software Taxability in South Carolina

South Carolina SaaS sales tax applies to charges by an application service provider (ASP) that lets customers access and use software hosted by the provider. These services are taxable as communications services.
Source: SC Revenue Ruling 12-1

Downloaded / electronically delivered software (no tangible medium) is generally not taxable. If software is preloaded onto hardware before title/possession transfers, any separately stated software charge is treated as part of the taxable sales price of the hardware.
Source: SC Revenue Ruling 12-1

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Digital Products

• Streaming of TV, movies, or music is taxable as a communications service.
  Source: SC Revenue Ruling 17-2

• Downloaded digital software is generally not taxable when transferred electronically with no tangible medium; if the software is installed by the seller on hardware prior to transfer, the charge is part of the taxable hardware sale.
  Source: SC Revenue Ruling 12-1

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E-Commerce & Tangible Goods in South Carolina

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Who Must Register and Collect South Carolina Sales Tax?

You must register and collect if you have:

• Physical nexus in South Carolina, or
• Economic nexus: $100,000 in gross revenue from South Carolina sales in the prior or current calendar year.
  Source: Remote Sellers

Marketplace facilitators are treated as retailers responsible for licensing, collecting, and remitting tax on sales made through their marketplace.
Source: Remote Sellers

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Sourcing & Local Tax

South Carolina is destination-based for delivered goods, you must report the local tax for the county/municipality where the sale/delivery occurs using ST-389 with your ST-3. To confirm current local tax applicability and programs, see the ST-500 and ST-575 notices.
Sources: ST-3 Instructions; ST-389; ST-500; ST-575

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Filing & Due Dates

• Register & file: Obtain a Retail License and file via MyDORWAY.
  Source: MyDORWAY
• Filing frequency: Monthly by default (quarterly/annual by SCDOR approval).
  Source: ST-3 Instructions
• Due date: Returns are due by the 20th of the month following the period.
  Source: ST-3 Instructions

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How to Register for South Carolina Sales Tax

1. Determine nexus (physical or $100,000 economic nexus).
   • Remote Sellers
2. Apply for a Retail License (Sales Tax Permit) and set up MyDORWAY.
   • MyDORWAY
3. Charge the correct rate: 6% state + applicable local tax based on delivery location; report local on ST-389.
   • ST-389
4. File & pay by the 20th for your assigned frequency.
   • MyDORWAY

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Exemption & Resale Certificates (South Carolina)

• Resale Certificate (ST-8A): for purchases for resale, lease, or rental.
  Sources: ST-8A Resale Certificate; RP 08-2

• Exemption Certificate (ST-8): for single-sale exemptions.
  Source: ST-8 Exemption Certificate

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FAQs: South Carolina Sales Tax

Is SaaS taxable in South Carolina?
Yes. Access to vendor-hosted software (ASP/SaaS) is taxable as a communications service.
Source: RR 12-1

Are downloaded digital products (e.g., software) taxable?
Generally no when software is delivered electronically with no tangible medium; yes if the software is preloaded onto hardware before transfer (the charge becomes part of the taxable hardware sale).
Source: RR 12-1

Are streaming subscriptions taxable?
Yes. Streaming of TV, movies, and music is taxable as communications.
Source: RR 17-2

Are delivery/shipping charges taxable?
It depends. South Carolina includes delivery charges in the tax base when conditions in Reg. 117-310 are met; see examples in RR 19-9.
Source: RR 19-9

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Official South Carolina Resources

• SCDOR Sales & Use Tax

  • Sales Tax overview
  • Remote Sellers (economic nexus & registration)
  • MyDORWAY (registration, e-file & payment)

• Rulings & Notices

  • SC Revenue Ruling 12-1: Software delivered electronically; ASP/SaaS taxable as communications
  • SC Revenue Ruling 17-2: Streaming media taxable
  • SC Revenue Ruling 19-9: Delivery charges / Reg. 117-310 summary
  • ST-500: Local Tax Notice
  • ST-575: Local Tax Programs & Guidance

• Filing & Forms

  • State Sales & Use Tax Return (ST-3); Instructions (ST-3I)
  • Schedule for Local Taxes (ST-389); Instructions
  • Resale Certificate (ST-8A); Exemption Certificate (ST-8)