South Carolina Resale Certificate: How to Get, Use, and Accept One

TL;DR

• South Carolina buyers can use Form ST-8A for resale purchases. The form itself is optional, but any resale certificate a seller accepts must contain all the information ST-8A requests.

• A South Carolina Retail License number, a qualifying South Carolina wholesaler exemption number, or a valid out-of-state retail license number can support a resale certificate. A Social Security number, FEIN, or South Carolina Use Tax registration number cannot.

• A complete, properly signed certificate shifts tax liability to the buyer only if the seller neither fraudulently fails to collect tax nor solicits an unlawful resale claim. The seller must keep the certificate.

• A resale certificate does not expire unless revoked or canceled in writing. The South Carolina Retail License carries a one-time $50 fee per location and does not require renewal.

What counts as South Carolina resale documentation

South Carolina buyers can use Form ST-8A or another resale certificate that supplies every item ST-8A requires. The buyer gives the completed certificate to the seller, who keeps it. A license number identifies the buyer, but a license alone does not document the resale purchase.

South Carolina is not a Streamlined Sales Tax (SST) member. Do not assume an SST certificate qualifies as South Carolina resale documentation.

How buyers get and use a resale certificate

1. Get the right license number. If you make retail sales in South Carolina, obtain a South Carolina Retail License through the Business Tax Application on MyDORWAY before making taxable retail sales. If you do not retail in South Carolina, you can use a valid retail license number from your home state and identify the issuing state on the certificate.

2. Complete a resale certificate. Download Form ST-8A, or use another certificate that contains all the information ST-8A requests. Enter the seller’s name and address, your business and address, your type of business, the kinds of goods you sell, and the applicable license number. A retail license alone does not serve as a resale certificate.

3. Check that the purchase qualifies. Use the certificate when you buy goods for resale, lease, or rental and you sell, lease, or rent the same kind and type of goods the seller supplies. An owner, partner, or officer must print their name, sign, state their title, and date the certificate.

4. Give the certificate to the seller. The seller keeps it to document the sale. Do not send it to the South Carolina Department of Revenue.

5. Report goods you take for your own use. If you withdraw, use, or consume goods bought for resale, report the withdrawal and pay tax even if you later resell them. For wholesale inventory withdrawn for your own use, include the goods in gross proceeds of sales at your offered sale price, allowing customary discounts, but never below your purchase cost.

6. Revoke the certificate when appropriate. If you stop buying goods for resale from a seller, revoke the certificate you gave that seller in writing. The certificate remains effective until you revoke or cancel it in writing.

How sellers accept and verify a resale certificate

A seller can shift tax liability to the buyer only by accepting a fully and properly completed resale certificate. Under South Carolina’s Form ST-8A instructions, the seller must also avoid fraudulently failing to collect or remit tax and must not solicit an unlawful resale claim. Use these checks before treating a sale as exempt.

1. Collect a complete, signed certificate. Check for the seller’s name and address, the purchaser’s business details and license number, the types of goods the purchaser sells, and the completion date. An owner, partner, or officer must provide a printed name, title, and signature. You may accept a document other than ST-8A only if it contains all the information ST-8A requires.

2. Check the resale ID. Do not accept a Social Security number, FEIN, or South Carolina Use Tax registration number as a resale ID. A valid out-of-state retail license number or South Carolina wholesaler exemption number may qualify.

3. Verify a South Carolina Retail License number using SCDOR’s online lookup. A Retail License by itself does not replace a resale certificate.

4. Compare the goods with the purchaser’s business. The purchaser must sell, lease, or rent tangible personal property of the same kind and type as the goods you sell under the certificate.

5. Do not solicit an improper resale claim. Ask for a valid certificate rather than encouraging a purchaser to claim resale for goods outside its business.

6. Keep a copy of the certificate. The seller needs the document to support the exempt sale if SCDOR reviews it.

If a certificate is incomplete or invalid, ask the purchaser for a corrected one before treating the sale as exempt. Without a qualifying certificate, the seller remains liable for the tax.

Buyer versus seller checklist

Common mistakes

A seller cannot rely on a resale certificate with missing required information or an invalid resale ID. The South Carolina resale certificate calls for buyer and seller details, the buyer’s license number, a description of the goods the buyer sells, and an authorized person’s printed name, signature, title, and completion date. A Social Security number, FEIN, or South Carolina Use Tax registration number cannot replace a valid resale license number.

The buyer’s stated business must also fit the purchase. A certificate for resale does not support a tax-free purchase of goods the buyer does not sell, lease, or rent. If the buyer later withdraws resale inventory for its own use, the buyer must report the withdrawal and pay tax. Failing to report it does not necessarily invalidate an otherwise complete certificate, but it leaves the buyer’s tax obligation unpaid.

Where Taxwire fits for multistate sellers

If you sell in multiple states, you still need to review resale documentation under the rules that apply to each sale. Taxwire calculates tax at the invoice level using the product category, delivery location, and jurisdiction-specific rules. It does not replace your certificate checks.

Taxwire also handles multistate registration and filing. You can use those services for tax calculation and filing while keeping certificate collection and verification in your own process.

FAQs

• Is Form ST-8A mandatory? No. You may use another resale certificate if it includes all the information South Carolina requires on Form ST-8A.

• Does a resale certificate expire? No. A completed certificate remains effective until the purchaser revokes or cancels it in writing.

• Can an out-of-state buyer use a resale certificate? Yes. An out-of-state purchaser may use a valid retail license number from another state and identify the issuing state on ST-8A. South Carolina also accepts another state’s resale certificate and number.

• What happens if a buyer knowingly misuses a resale certificate? The buyer owes the tax plus a penalty of 5% of that tax for each month or part of a month the failure to pay the tax continues, capped at 50% of the tax. Other penalties may also apply.

• What does a South Carolina Retail License cost, and how long does it last? The Retail License costs a one-time, nonrefundable $50 per retail location. It does not expire, but you must update it when your business location changes.

• How can a seller verify a South Carolina Retail License? Enter the buyer’s license number in the SCDOR Retail License lookup. A valid license number does not replace a completed resale certificate.

Sources and disclaimer

• Form ST-8A, Resale Certificate

• South Carolina Retail License information

• Retail License verification

This guide provides general information, not tax advice. Rules can change, so confirm current requirements with the South Carolina Department of Revenue.