While we help businesses across the country, as I mentioned in this post, our firm started in Bluffton, South Carolina and many of our small business customers are local. One of the most common problems we help our local small business customers with is Beaufort County sales tax. While a business doesn’t pay sales tax, the business does collect sales tax from their customers and then remit it to the state. The state collects sales tax on behalf of counties in South Carolina, and then disburses those funds. Sales tax is a significant compliance burden for small business owners.
Below is everything you need to know about sales tax in Beaufort County, South Carolina as a a small business owner or operator.
What is the sales tax rate in Beaufort County, South Carolina?
The sales tax rate is 7%, which is inclusive of the 6% statewide sales tax and a 1% local Green Space Tax which went into effect on May 1, 2023.
What items are subject to sales tax?
SC Code Section 12-36 outlines what is subject to sales tax. The sale of tangible personal property and some services are subject to sales tax. Examples of services that are taxable include dry cleaning and communications services. It’s worth noting that communications services include cloud based services.
What are the due dates for my business to file and pay sales tax?
The sales tax return filing frequency for your small business is going to be dependent on your revenue volume. The default cadence is monthly, though if your liability is less than $100, you may be able to file quarterly. Additionally, with permission from the SC Department of Revenue, you may be able to file on a less frequent basis, such as annually.
The due date for sales tax remittances and sales tax returns is always going to be the 20th of the month following the period end. For instance, for a May collection period the sales tax return and remittance will be due by June 20th.
What is a retail license?
Retail licenses are codified in SC Code Section 12-36, Article 5. A retailer, as detailed above, is required to apply for a retail license prior to commencing business. A retail license needs to be procured for each location and costs $50. It’s worth noting there are several carve-outs for transient types of sellers, for example, periodic flea market craftsmen.
How do I file my sales tax returns?
Though paper forms can be filed so long as your sales tax liability is less than $15,000, we always recommend filing and paying online via MyDORWAY whenever possible. Since Beaufort County has a local sales tax (1% Green Space), there are two forms that must be filed. The main form is the ST-3 and the supplementary local form is the ST-389.
You may also want to consider an automated or semi-automated solution to relieve some of the compliance burden on your business operation. There are a number of point-of-sale (POS) platforms that will assist with the sales tax compliance process. Some POS platforms are industry-specific with the intent of suiting your needs better. More ubiquitous options would include QuickBooks Online, Avalara, TaxJar and the like.
Conclusion
The burden of calculating, collecting and remitting sales tax places a significant compliance burden on any small business. We would recommend a two-pronged approach of getting professional assistance with your sales tax setup and implementing technology to efficiently manage your business’ compliance.
