COVID-19 Charges Subject to Tax in South Carolina

South Carolina has issued guidance stating that any COVID-19 surcharge or fee, a handling fee, a takeout charge, or a similar fee charged by a retailer as part of the sale of tangible personal property is includable in gross proceeds of sales and subject to South Carolina sales and use tax, unless otherwise exempt. In South Carolina, gross proceeds of sales subject to tax include all value that comes from or is a direct result of the sale of tangible personal property. Accordingly, the fees and charges discussed above are subject to tax. For items that are exempt from tax, the surcharge follows the exempt status of the sale.  (Information Letter 20-23, South Carolina Department of Revenue, August 5, 2020)

Posted on August 13, 2020