Avalara Taxrates > Blog > Sales Tax News > South Carolina Ruling: Sales Tax and Software - Avalara

South Carolina Ruling: Sales Tax and Software


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.

Get Free Tax Rate Tables


Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.