South Carolina Ruling: Sales Tax and Software
- Mar 29, 2012 | Will Frei
The South Carolina Department of Revenue recently issued a ruling regarding the taxability of electronically delivered software (SC #12-1).
The Department ruled that if a consumer purchases software and the seller comes to the consumer's location to install the software via internet (either by transfer or alteration to the consumer's source code), then the sale is not subject to South Carolina sales tax.
According to the Department, the sale would only be taxable if the seller delivered the software via tangible personal property, such as a "tape" or "diskette," as outlined in SC #03-5.