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South Carolina Now Accepting Sales Tax Applications from Amazon Suppliers

South Carolina – Sales tax applications will be accepted by the South Carolina Department of Revenue (SCDOR) from suppliers that sell products via Amazon to South Carolina purchasers.  The purpose of accepting these applications is to allow retailers to collect and remit sales and use tax for sales until the legal matter is settled between SCDOR and Amazon. The legal case will determine whether-or-not Amazon is responsible for collecting sales and use tax on goods sold.

According to the SCDOR, under the South Carolina law, Amazon is the liable retailer responsible for the collection and remitting of sales and use tax on their website.   In July of 2017, Amazon filed a case to challenge the South Carolina’s sales and use tax laws.

The SCDOR recently filed a motion with the Administrative Law Court to hold Amazon liable for the collection of Sales and Use Tax on sales made through their website.  Amazon maintains that they are the third-party supplier and not the retailer in this case and should not be responsible for any sales and use tax collections and remitting.

The collected taxes will then be held in a trust until the court rules on the Amazon legal challenge. The motion was previously denied but is still ongoing and will go to trial later this year, in November of 2018.

https://dor.sc.gov/resources-site/media-site/Pages/SCDOR-NOW-ACCEPTING-RETAIL-SALES-TAX-APPLICATIONS-FROM-THIRD-PARTY-SUPPLIERS.aspx

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts (DDH LLC) specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At DDH LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

Contact us at Davis Davis & Harmon LLC or call 972-488-5000


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