Tax Management Services
Our team ensures compliance with federal, state, and local tax laws. In addition, our team files tax returns as well as remits tax payments to the appropriate government authorities.
- Imposed on the seller of goods and certain services.
- Liability lies with supplier for charging the university the sales tax and paying it to the state.
- Generally retail sales are subject to the sales tax.
- All SC suppliers should be registered in SC to charge sales tax on their invoices.
- Non SC suppliers generally not registered in SC to charge sales tax on their invoices unless criteria for nexus is met.
- State rate equal to 6% of gross proceeds of sale.
- Counties may elect to impose additional local sales tax equal to 1%.
- Imposed on the purchaser of goods and certain services.
- Liability lies with the university to accrue and remit the use tax to the state, not the supplier.
- Use tax is complementary to sales tax.
- Generally accrue use tax on purchases from non-SC suppliers that do not meet criteria for nexus.
Sales and Use Tax Exemptions and Exclusions
It is important to note that the University of South Carolina is not exempt from sales and use tax. However, there are certain goods and services that the University is exempt or excluded from paying sales and use tax on. Please see “Use Tax Matrix” below.
In addition to the exemptions noted above, there is a University form that must be completed to claim exemption from sales and use tax on research and development equipment. Please see “R&D Equipment Sales and Use Tax Exemption Form” below.
If a supplier, international or domestic, does not reside in the state of South Carolina and is not registered with the SC Secretary of State or SC Department of Revenue, we are required to withhold on the following payments at the rates stated below:
For Services – 2% of each payment made to the nonresident under the contract that exceeds $10,000.
For Rentals and Royalties (Non-Corporations) – payments at a rate of $1,200 or more a year for the use of/the privilege of using property in South Carolina, withhold 7% of the total of each payment made to a nonresident taxpayer who is not a corporation.
For Rentals and Royalties (Corporations) – payments at a rate of $1,200 or more a year for the use of/the privilege of using property in South Carolina, withhold 5% of the total of each payment made to a nonresident taxpayer who is a corporation.
If a supplier does not reside in the state of South Carolina and is registered with the SC Secretary of State or SC Department of Revenue, we are required to obtain a completed SC DOR Form I-312. Once received, we are relieved of the liability of withholding on payments for services, rentals, and royalties.
South Carolina State and Local Sales & Use Tax Return