What Triggers Nexus in South Carolina?
- Sales Tax
- Jul 23, 2016 | Tim Parker
Not sure what triggers nexus in South Carolina? The rules are similar to other states with a few exceptions. You can find the rules in South Carolina Revenue Ruling #14-4. Here are some of the highlights.
What Does Trigger Nexus
If you maintain a physical location in the state, store business property, maintain an inventory or operate a distribution facility, you have triggered nexus.
Additionally, you have nexus if you sell property to South Carolina residents from outside the state, or sell and deliver software via some physical means like a flash drive, tape, or disk. If the software was delivered via email or downloaded from a website, that does not trigger nexus.
If you have employees in the state including independent contractors, trainers, tech support representatives, call center representatives located in the state, or an employee visits the state 4 or more times in a year, you’ve triggered nexus.
If you make sales over the Internet and your website is hosted on a server located in South Carolina, you probably triggered nexus. Finally, if you hold two or more one-day seminars in the state, you guessed it -- nexus.
What Does Not Trigger Nexus
If you hold some kind of certificate of authority to conduct business in the state, you have a bank account in the state, you’re listed in a local telephone book, or you have a local phone number forwarding to your business in another state, you have not triggered nexus. You have to actually conduct business in the state before you can be taxed.
If you mail catalogs to a South Carolina resident or you’re an Internet retailer advertising on a website whose owner is located in the state or you sell digital content like music or video that South Carolina residents download, you’re exempt from nexus.
There are other less common activities that don’t trigger nexus as well.