Procurement Policies and Procedures
SALES AND USE TAX
Sales tax is imposed on the sale of goods and certain services in South Carolina . Generally, all retail sales are subject to the sales tax. Statewide the sales tax is 6%, however counties may elect to impose an additional 1% local sales tax. Effective, June 1, 2007 the statewide sales tax is 6%.
Use tax is imposed on goods and services purchased outside the state of South Carolina and then brought into the state without any sales tax having been paid on them. If a receipt from an out-of-state retailer shows that sales tax was collected on the merchandise, no use tax should be remitted. However, if the retailer is not licensed to collect South Carolina tax the purchaser of the merchandise is then responsible for remitting this tax to the South Carolina Department of Revenue. If a South Carolina retailer fails to collect sales tax on a purchase, do not add tax to the purchase. All retailers in South Carolina are responsible for collecting their own sales tax.
Freight can be taxable if the shipping terms are "FOB CLEMSON" or "FOB DESTINATION" this means the purchaser of the goods takes title of the goods at their destination (which for us is Clemson). Freight is not taxable if the shipping terms are "FOB SHIPPING POINT" or "FOB POINT OF ORIGIN" this means title is not taken at Clemson, but at the vendor's loading dock. Freight charges billed directly by freight or transportation companies (trucking companies or railroads) are not subject to sales or use tax.
Computer software: Rev. Ruling # 96-3 states that computer software delivered in the form of a computer diskette or magnetic tape is tangible personal property subject to taxation. Computer software sold and delivered by electronic means is not subject to sales and use tax. It should be noted that if we receive delivery on the same item both ways, the entire amount is taxable.
Download Sales and Use Tax tips.
Warranties, Maintenance and Similar Service Contracts- Taxable
Effective, September 1, 2011, the South Carolina Department of Revenue has announced legislative changes to the collection of State sales tax or the accrual of use tax. Please use the table below to simplify the tax inclusion/exclusion questions on invoices that Clemson pays for goods and services.
Please note that this table applies to deliveries made after September 1, 2011.
|Maintenance Contract for Equipment or Item||Purchased with Equipment/Tangible Property even if listed as a separate line item.||Yes|
|Maintenance Contract for Equipment or Item||Purchased at a later date or not purchased in conjunction with the product.||No|
|Maintenance Contract for Software||Purchased or Delivered Tangible Property (Disk, Flash Drive, etc.)||Yes|
|Maintenance Contract for Software||Purchased with Software that was delivered electronically.||No|
|Software||Datebase access to online information services (legal services, credit reporting, etc.)||Yes|
|Software||Internet websites that allow customer access and use of software to enter and process their own information (known as ASP or Application Service Providers). The processing (tracking, reports, etc.) is done by the customer and not a process of the software. (itunes)||Yes|
|Software||Internet websites which provide the customer with data processing. Transactional processing where the software uses operations or interactions of procedures to process the customer's information. (Kronos, Peoplesoft)||No|
|Software||Purchased or Delivered Tangible Property (Disk, Flash Drive, etc.)||Yes|
|Warranty||Purchased with Tangible Property even if listed as a separate line item.||Yes|
|Warranty||Purchased at a later date or not purchased in conjunction with the product.||No|
Tangible personal property does not include the transmission of computer database information by a cooperative service when the database information has been assembled by and for the exclusive use of the members of the cooperative service.
Renewals of existing agreements (maintenance, warranty or software updates and licenses) are subject to tax based on the original purchase.
Certain transactions are excluded or exempted from the use tax. See also sales/use tax exclusions. Please refer to the South Carolina Department of Revenue for additional details as well as a list of counties which collect the 1% local sales tax. See the Sales Tax Rate by Zip Code chart for the most recent tax rates for each SC County.
Updated August 2016