GET A SOUTH CAROLINA RESALE CERTIFICATE FORM ST-8A
HOW TO GET A RESALE CERTIFICATE IN SOUTH CAROLINA?
A South Carolina Resale Certificate is a document that facilitates tax-exempt wholesale transactions, ensuring that sales tax is only applied at the final point of sale.
To obtain a South Carolina Resale Certificate follow these three steps.
✔ STEP 1 – Obtain a South Carolina Retail License to get a Sales Tax Number (Sales Tax ID) required for resale tax exemption.
✔ STEP 2 – Fill out the South Carolina Resale Certificate (Form ST-8A) with business details, Sales Tax Number, and a description of resale goods. Download South Carolina ST-8A resale certificate form
✔ STEP 3 – Give the signed ST-8A to suppliers when making tax-exempt purchases for resale; suppliers must keep it for audit purposes.
WHAT IS A SOUTH CAROLINA RESALE CERTIFICATE?
A South Carolina resale certificate is a tax-exempt form issued under South Carolina’s sales tax laws that permits a business to purchase goods from a supplier that are intended to be resold without the reseller having to pay sales tax on them.
The South Carolina resale certificate is also commonly known as form ST-8A, resale license, reseller permit, reseller license and tax exemption certificate.
The ST-8A form allows suppliers to know that you are legally allowed to purchase the goods without them having to charge you sales tax, since you will be reselling the goods and collecting sales tax from the consumer (end user). There is no limitation on where a reseller permit can be used as long as the seller accepts it. Any items can be purchased using the permit assuming that the items will be resold.
WHAT INFORMATION IS ON A SOUTH CAROLINA RESALE CERTIFICATE?
The information included on the South Carolina resale certificate include the name (company or individual) and address of the buyer, a descriptive detail of the goods being purchased, a reference that this merchandise is intended to be resold and the accurate South Carolina sales tax number. It is important that you follow the correct procedure and protocol involved in the resale certificate process. Any errors occurring during this process could cause delays or penalties to be incurred by either party.
IS A SOUTH CAROLINA RESALE CERTIFICATE THE SAME AS A SOUTH CAROLINA SALES TAX PERMIT?
No, a South Carolina Resale Certificate is not the same as a South Carolina Sales Tax Permit. The South Carolina Resale Certificate allows a buyer (such as a retailer) to purchase goods from a supplier (such as a wholesaler) without having to pay sales tax on the goods that would otherwise be taxable. The South Carolina Sales Tax Permit allows a company to make sales inside a state and collect/remit sales tax for those sales.
It is the responsibility of the supplier to keep a copy of the resale certificate for compliance purposes and the responsibility of the retailer to collect sales tax when the goods are sold.
In order to have a South Carolina resale certificate, you must first apply for a South Carolina sales tax permit. This permit will provide you with a South Carolina Tax ID number (sales tax number) which will be a necessary field on the South Carolina resale certificate.
IS A RESALE CERTIFICATE THE SAME AS TAX EXEMPT?
No. A resale certificate allows you to buy inventory without paying sales tax because the tax will be collected when you resell the goods, whereas “tax-exempt” status applies to entities (such as charities) that do not pay sales tax on their own purchases.
DO I NEED A RESALE CERTIFICATE IN SOUTH CAROLINA?
Yes, you need a South Carolina resale certificate if your business is a retail or wholesale operation that does not want to be responsible for collecting sales tax on resold items and wants to avoid future tax liability.
Since sales tax is only supposed to be paid one time on a taxable good or service, then you want to make sure you are compliant at your phase of the product’s sales life. Even though sales tax is usually paid by the end user, the only way to ensure this is with a South Carolina resale certificate that is properly filled out.
HOW TO VERIFY SOUTH CAROLINA RESALE CERTIFICATE?
South Carolina does not offer an online lookup. Verification is done by calling the South Carolina Department of Revenue at 844-898-8542 and confirming the purchaser’s Retail License number listed on Form ST-8A.
DO I NEED A LICENSE TO RESELL ITEMS IN SOUTH CAROLINA?
Yes. Anyone selling tangible personal property at retail in South Carolina, including pop-up shops and seasonal vendors, must hold a Retail License for each location before making sales.
DO YOU NEED A RESALE LICENSE TO SELL ONLINE IN SOUTH CAROLINA?
Yes. Online sellers that ship to South Carolina customers must obtain a Retail License and collect South Carolina sales tax once they have physical or economic nexus (USD 100,000 in annual South Carolina sales).
HOW LONG DOES IT TAKE TO GET A RESALE CERTIFICATE IN SOUTH CAROLINA?
The South Carolina Department of Revenue states that online sales tax license applications are processed in up to five business days; once the sales tax certificate is issued you can use Form ST-8A immediately. Partnering with Tax ID Bureau ensures the application is complete and reduces delays.
HOW TO USE OR ACCEPT A SOUTH CAROLINA RESALE CERTIFICATE
To use or accept a South Carolina resale certificate, reciprocity laws govern its interchangeability with resale certificates from other states. You must obtain a South Carolina retail license by applying for a South Carolina sales tax permit, which provides a unique sales tax registration number. This number is required to complete the resale certificate (Form ST-8A). The resale certificate must be properly completed with all necessary information, including the business name, address, and sales tax registration number, to be valid. South Carolina does not accept out-of-state resale certificates unless a reciprocity agreement is in place. Some states do not accept out-of-state resale certificates, including Alabama, California, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Washington, and Washington, D.C. The buyer’s out-of-state resale certificate is not valid if they are from a non-reciprocating state.
You must ensure that the resale certificate is properly completed and contains all necessary information. The certificate must be valid and not expired. If you are a supplier, you must verify the validity of the buyer’s sales tax registration number through South Carolina’s verification tools. The resale certificate must be signed by the buyer, and purchases must align with the intended resale purpose. If any information is incomplete or appears fraudulent, further verification is required. Sellers are responsible for maintaining a copy of each resale certificate for audit purposes. One certificate per customer is sufficient, but subsequent purchases must be reviewed to ensure compliance.
Collusion with buyers to evade sales tax collection is illegal. Sellers who accept fraudulent or improperly completed resale certificates are liable for unpaid sales taxes. Businesses must adhere to these guidelines to comply with South Carolina’s resale certificate requirements and avoid legal or financial penalties.