How To Get A South Carolina Resale Certificate [2023 Guide]

A resale certificate is a document that allows a business to buy merchandise that will be resold without paying sales tax. In order to obtain the certificate, the retailer will need to provide a South Carolina Resale Certificate to their vendor. 

Learn more about what a resale certificate is, how to get one, and more.

What is a Resale Certificate?

When retailers purchase products to resell, they often don’t pay state sales tax to the supplier on the purchase. The sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise. The collected sales tax is then sent by the retailer to the South Carolina Department of Revenue.

For example, let’s consider a home decor store in South Carolina. With a valid resale certificate, the store owner can purchase decorative items like wall art, lamps, and vases from suppliers without paying sales tax on those transactions. When a retail customer visits the store and purchases a wall art piece, the retailer will charge sales tax to the customer based on the item’s full price. The retailer will collect the sales tax from all their transactions and periodically remit the sales tax to the state, typically at the end of the month. This process allows the home decor store to sell its products while ensuring that the appropriate sales tax is collected and forwarded to the state.

The purpose of the resale certificate is to provide evidence of why sales tax was not collected on a transaction. Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license. In order for the supplier to allow the tax-exempt purchase, the seller needs proof the buyer intends to resell the product by providing a valid resale certificate.

The sales tax exemption is only intended to be used for inventory that will be resold and not intended for the tax-free purchase of items used in normal business operations such as paper, pens, etc.

Getting Started

Before a business starts selling products or providing taxable services, it must first get a South Carolina Retail License from the South Carolina Department of Revenue. The Retail License is sometimes referred to as a seller’s permit, sales tax number, or sales tax license.

How to fill out the South Carolina Resale Certificate – Form ST-8A

Filling out Form ST-8A is pretty straightforward, but it is critical for the seller to gather all the information.

If audited, the South Carolina Department of Revenue requires the seller to have a correctly filled out Form ST-8A Resale Certificate.  Without it correctly filled out, the seller could end up owing sales taxes that should have been collected from the buyer in addition to penalties and interest.  

Steps for filling out the ST-8A South Carolina Resale Certificate

Step 1 – Begin by downloading the South Carolina Resale Certificate Form ST-8A 
Step 2 – Identify the name and business address of the seller
Step 3 – Include the kind of business the purchaser is engaged in
Step 4 – Describe the items that are sold, leased, or rented from the purchaser
Step 5 – Identify the name and business address of the buyer
Step 6 – Enter the purchaser’s South Carolina Retail License Number
Step 7 – The purchaser will certify the property being purchased is for resale, then include their name and title and sign and date the certificate. 

ST-8A Resale Certificate Fillable Form

South Carolina Resale Certificate FAQs