Typically, retailers use resale certificates to buy wholesale goods without paying sales tax. You’ll need a separate seller’s permit to collect sales tax from South Carolina buyers.
When presented with a South Carolina resale certificate, sellers must collect and validate certificates before exempting tax. If sellers fail to do this and face an audit, they will be responsible for fines and penalties.
You generally need a sales tax permit to use a resale certificate. States don’t require you to verify certificates extensively. If customers falsify documents and you made a good faith effort, you aren’t liable.
Obtaining a Resale Certificate
To get a resale certificate in South Carolina, you’ll need to obtain it from the Department of Revenue.
In South Carolina, a resale certificate allows a business to buy goods tax-free for resale. It differs from a sales tax license, which allows a business to collect sales tax from customers.
Out-of-State Certificates and Compliance
South Carolina allows out-of-state resale certificates, but verify information like the registration number. Don’t participate in fraud or you may face fines and penalties.
Businesses in Pennsylvania need a valid Pennsylvania sales tax number.
Frequently Asked Questions
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What US states do not accept out-of-state resale certificates?
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Does Tennessee charge sales tax on out-of-state purchases?