Instructions for Form ST-3 "State Sales and Use Tax Return" - South Carolina

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ESSENTIAL INFORMATION FOR FORM ST-3
(Rev. 5/1/18)
Please read carefully and keep this information in a convenient place for future reference.
WHO MUST FILE
transaction is not subject to the tax. It is not required that the form
ST-8A be used as long as the certificate presented to the seller
You are required to file form ST-3 to report any sales and use tax in
contains the purchaser's name, address, and retail sales tax license
this State. Note: You must file a return even if there is no tax due for
number. Also, it is not necessary that a certificate be extended each
the period. Enter zero “0” on lines 1 and 3 on the ST-3 if you do not
time a sale is made. A resale certificate should not be used by a
have sales and/or purchases to report for the period. You may file zero
retailer to purchase items for their own use.
returns electronically using MYDORWay at MYDORWAY.dor.sc.gov.
ST-14: Claim For Refund: If you have overpaid your sales/use tax
WHEN TO FILE
on your return, you should file a claim for refund in the form of a
letter or by using the form ST-14, Claim for Refund, and file
Sales and Use Tax returns are due on or before the twentieth (20th)
amended (corrected) figures for the periods requested. Do not take
day of the month following the close of the period ended. Example:
a credit on the sales and use tax return for any overpayments.
The claim for refund should specify: the name, address, and
Monthly filers: (Return must be received/postmarked by the
telephone number of the taxpayer or contact person; the
20th)
• January reporting period - no later than February 20.
appropriate taxpayer identification number(s); the tax period or date
• February reporting period - no later than March 20.
for which the tax was paid; the nature and kind of tax paid; the
• March reporting period - no later than April 20, etc.
amount which is claimed as erroneously paid; a statement of facts
• December reporting period - no later than January 20 (of
and documentation supporting the refund position; a statement
outlining the reasons for the claim, including any law or other
the next year).
authority upon which you rely; and any other relevant information
Note: To request a change in your filing status (monthly, quarterly,
that the Department may reasonably require.
annual or seasonal) a written request must be made to the South
Carolina Department of Revenue. The request must be approved
C-278: Account Closing Form: When closing or selling your
before a return and remittance can be made for the filing status
business, you are required by law to return your sales and use tax
being requested.
license to the Department of Revenue indicating the date of closing.
Complete Form C-278 when closing your business. You must file all
Quarterly Filers: (Return must be received/postmarked by the
returns and pay all taxes due. If you sell your business, the new
20th)
owner will not be issued a new license until taxes due for locations
• First Quarter (January, February, March) reporting period -
have been paid.
no later than April 20.
• Second Quarter (April, May, June) reporting period - no
Change in Ownership: Any change in ownership will require a new
later than July 20.
owner to complete a Business Tax Application, Form SCDOR-111
• Third Quarter (July, August, September) reporting period -
and remit the appropriate license fee. The SCDOR-111 is available
no later than October 20.
on our website at dor.sc.gov. However, if you would like to obtain a
• Fourth Quarter (October, November, and December)
license online (via the internet), go to mydorway.dor.sc.gov.
reporting period - no later than January 20 (of the
next year).
SC8822: Change of Name/Address/Business Location: Any
change of location requires that written notification be sent to the
Annual Filers: (Sales for the entire year)
Department of Revenue by submitting form SC8822.
December return must be received/postmarked no later than
January 20 (of the next year).
Filing an Amended Sales and Use Tax Return: Instructions for
filing an amended State and Local Sales and Use Return for South
Seasonal Filers: Seasonal filers are required to file returns only for
Carolina are as follows:
those months scheduled to be reported. Returns must be
received/postmarked no later than the 20th of the next month.
• Check the “Amended Return” box on the top of your State
sales and use tax return (e.g., ST-3, ST-388, ST-403 or
Note: If the 20th falls on a weekend or legal holiday, the return is
due on the next business day.
ST-455). If there is no check box at the top of the return to
indicate this is an amended return, be sure to write
FILING STATE AND LOCAL OPTION
“Amended” at the top of the return. If your local sales and
SALES AND USE TAX FORMS
use tax return
(e.g., ST-389) will change, write
“AMENDED” across the top of the form.
ST-3: State Sales and Use Tax Return: This form is available on
• When filing an amended return, be sure to complete your
the SCDOR website (dor.sc.gov). When completing this form, you
return as if it were an original return. In other words,
must provide your business name, address, retail license number or
complete the amended return as if you were filing it for the
use tax registration number, period covered, federal employer
first time. DO NOT complete the amended return with
identification number or social security number.
figures that represent the difference between the original
amounts reported on the return and the amended amounts
ST-389: Schedule for Local Taxes: You are required to file form
to be reported on a return.
ST-389 to report the appropriate local sales and use tax to a county
• If using a copy of the original return, draw a line through
or municipality based upon sales or deliveries within the county or
any incorrect or wrong amounts as they appear on the
municipality. You are required to file this form when:
original return reported and write down the correct
• Your business is located in a county that imposes the tax or
amounts as they should have appeared on the return.
• Your business delivers to a county or municipality with local
• If you filed an amended return on or by the due date of your
tax regardless of whether your business is or is not located
original tax return, or if you filed an amended return after
in a county that imposes a local tax.
the due date of an originally filled return which was timely
filed and paid, recalculating the taxpayer’s discount may be
The various local taxes reportable on the ST-389 are indicated on
necessary.
specific pages of form ST-389. See ST-389 instructions for reporting
• If you underpaid your taxes when filing an amended return,
requirements.
verify your computations of the underpayment amount and
If you need additional space to report a local tax, use additional
send the additional tax due with applicable penalties and
page(s) of the specific local tax.
interest. Penalty and Interest calculations are available on
our website mydorway.dor.sc.gov. If you overpaid your
ST-8A: Resale Certificate: The resale certificate form is used by
taxes, see Form ST-14 (Claim for Refund) for additional
retailers (purchasers) to purchase tax-free at wholesale items that
information.
are to be resold. This certificate is extended by the purchaser to the
• Sign and date the amended return.
seller who maintains the certificate on file as evidence that the sales
ESSENTIAL INFORMATION FOR FORM ST-3
(Rev. 5/1/18)
Please read carefully and keep this information in a convenient place for future reference.
WHO MUST FILE
transaction is not subject to the tax. It is not required that the form
ST-8A be used as long as the certificate presented to the seller
You are required to file form ST-3 to report any sales and use tax in
contains the purchaser's name, address, and retail sales tax license
this State. Note: You must file a return even if there is no tax due for
number. Also, it is not necessary that a certificate be extended each
the period. Enter zero “0” on lines 1 and 3 on the ST-3 if you do not
time a sale is made. A resale certificate should not be used by a
have sales and/or purchases to report for the period. You may file zero
retailer to purchase items for their own use.
returns electronically using MYDORWay at MYDORWAY.dor.sc.gov.
ST-14: Claim For Refund: If you have overpaid your sales/use tax
WHEN TO FILE
on your return, you should file a claim for refund in the form of a
letter or by using the form ST-14, Claim for Refund, and file
Sales and Use Tax returns are due on or before the twentieth (20th)
amended (corrected) figures for the periods requested. Do not take
day of the month following the close of the period ended. Example:
a credit on the sales and use tax return for any overpayments.
The claim for refund should specify: the name, address, and
Monthly filers: (Return must be received/postmarked by the
telephone number of the taxpayer or contact person; the
20th)
• January reporting period - no later than February 20.
appropriate taxpayer identification number(s); the tax period or date
• February reporting period - no later than March 20.
for which the tax was paid; the nature and kind of tax paid; the
• March reporting period - no later than April 20, etc.
amount which is claimed as erroneously paid; a statement of facts
• December reporting period - no later than January 20 (of
and documentation supporting the refund position; a statement
outlining the reasons for the claim, including any law or other
the next year).
authority upon which you rely; and any other relevant information
Note: To request a change in your filing status (monthly, quarterly,
that the Department may reasonably require.
annual or seasonal) a written request must be made to the South
Carolina Department of Revenue. The request must be approved
C-278: Account Closing Form: When closing or selling your
before a return and remittance can be made for the filing status
business, you are required by law to return your sales and use tax
being requested.
license to the Department of Revenue indicating the date of closing.
Complete Form C-278 when closing your business. You must file all
Quarterly Filers: (Return must be received/postmarked by the
returns and pay all taxes due. If you sell your business, the new
20th)
owner will not be issued a new license until taxes due for locations
• First Quarter (January, February, March) reporting period -
have been paid.
no later than April 20.
• Second Quarter (April, May, June) reporting period - no
Change in Ownership: Any change in ownership will require a new
later than July 20.
owner to complete a Business Tax Application, Form SCDOR-111
• Third Quarter (July, August, September) reporting period -
and remit the appropriate license fee. The SCDOR-111 is available
no later than October 20.
on our website at dor.sc.gov. However, if you would like to obtain a
• Fourth Quarter (October, November, and December)
license online (via the internet), go to mydorway.dor.sc.gov.
reporting period - no later than January 20 (of the
next year).
SC8822: Change of Name/Address/Business Location: Any
change of location requires that written notification be sent to the
Annual Filers: (Sales for the entire year)
Department of Revenue by submitting form SC8822.
December return must be received/postmarked no later than
January 20 (of the next year).
Filing an Amended Sales and Use Tax Return: Instructions for
filing an amended State and Local Sales and Use Return for South
Seasonal Filers: Seasonal filers are required to file returns only for
Carolina are as follows:
those months scheduled to be reported. Returns must be
received/postmarked no later than the 20th of the next month.
• Check the “Amended Return” box on the top of your State
sales and use tax return (e.g., ST-3, ST-388, ST-403 or
Note: If the 20th falls on a weekend or legal holiday, the return is
due on the next business day.
ST-455). If there is no check box at the top of the return to
indicate this is an amended return, be sure to write
FILING STATE AND LOCAL OPTION
“Amended” at the top of the return. If your local sales and
SALES AND USE TAX FORMS
use tax return
(e.g., ST-389) will change, write
“AMENDED” across the top of the form.
ST-3: State Sales and Use Tax Return: This form is available on
• When filing an amended return, be sure to complete your
the SCDOR website (dor.sc.gov). When completing this form, you
return as if it were an original return. In other words,
must provide your business name, address, retail license number or
complete the amended return as if you were filing it for the
use tax registration number, period covered, federal employer
first time. DO NOT complete the amended return with
identification number or social security number.
figures that represent the difference between the original
amounts reported on the return and the amended amounts
ST-389: Schedule for Local Taxes: You are required to file form
to be reported on a return.
ST-389 to report the appropriate local sales and use tax to a county
• If using a copy of the original return, draw a line through
or municipality based upon sales or deliveries within the county or
any incorrect or wrong amounts as they appear on the
municipality. You are required to file this form when:
original return reported and write down the correct
• Your business is located in a county that imposes the tax or
amounts as they should have appeared on the return.
• Your business delivers to a county or municipality with local
• If you filed an amended return on or by the due date of your
tax regardless of whether your business is or is not located
original tax return, or if you filed an amended return after
in a county that imposes a local tax.
the due date of an originally filled return which was timely
filed and paid, recalculating the taxpayer’s discount may be
The various local taxes reportable on the ST-389 are indicated on
necessary.
specific pages of form ST-389. See ST-389 instructions for reporting
• If you underpaid your taxes when filing an amended return,
requirements.
verify your computations of the underpayment amount and
If you need additional space to report a local tax, use additional
send the additional tax due with applicable penalties and
page(s) of the specific local tax.
interest. Penalty and Interest calculations are available on
our website mydorway.dor.sc.gov. If you overpaid your
ST-8A: Resale Certificate: The resale certificate form is used by
taxes, see Form ST-14 (Claim for Refund) for additional
retailers (purchasers) to purchase tax-free at wholesale items that
information.
are to be resold. This certificate is extended by the purchaser to the
• Sign and date the amended return.
seller who maintains the certificate on file as evidence that the sales
STEP-BY-STEP INSTRUCTIONS FOR ST-3
Please read this section before completing your form.
ST-3 I (Rev. 5/1/18) 5218
When completing the ST-3 form, all entries must be typed or hand printed, clearly and legibly. If you are using
a blank form be sure to indicate the following information: Business Name, Address, Retail License Number or
Purchaser's Certificate (Use Tax Registration), Federal Employer Identification Number or other identifying
information (Social Security Number) and period covered. Please draw a line through any incorrect information,
enter corrections and check the box on your return if your address changed.
If you have a retail license or a use tax registration, you are required to file a tax return even if there is NO TAX DUE for the period.
IMPORTANT: Complete all lines indicated with a delta ( ) beside it, even if the amount to be reported is zero.
WHEN FILING "NO SALES" RETURNS, you must enter zeroes on lines 1 and 3 on the ST-3 or see Business Tax Telefile
instructions.
COMPLETE THE SALES AND USE TAX WORKSHEET ON THE BACK OF THE ST-3 BEFORE MAKING ENTRIES ON
LINES 1 THROUGH 10. The sales tax worksheet instructions have been changed to use the word “item” when referring to
entries on the sales tax worksheet and “line” when referring to entries on the front of the form.
COMPLETING THE SALES AND USE TAX WORKSHEET
STEP 1
SALES AND USE TAX WORKSHEET INSTRUCTIONS
ITEMS 1 through 6
Item 1: Gross Proceeds of Sales/Rentals and Withdrawals of Inventory for Own Use Enter the total amount of all sales
(taxable and nontaxable), leases and/or rentals of tangible personal property made by the business for the reporting period.
Nontaxable sales are to be deducted on Item 5. DO NOT INCLUDE THE AMOUNT OF SALES TAX COLLECTED.
You must also report purchases of tangible personal property (merchandise, equipment, etc.) purchased tax free at
wholesale, but used by you and/or your employees. When purchasing merchandise out-of-state, there may be
circumstances when additional tax is due. To determine if you owe additional tax, contact the South Carolina Department of
Revenue (SCDOR).
Item 2: Out-of-State Purchases Subject to Use Tax Enter the total purchases of tangible personal property purchased
from an out-of-state retailer who did not collect South Carolina use tax. If the tax rate in your county is greater than the tax
rate paid out-of-state, contact SCDOR for additional information.
Item 3: Total Add Items 1 and 2. Enter total here and on line 1 on the front of ST-3. If local tax is applicable enter total
amount on Item 1 of ST-389 worksheet.
Item 4: Sales and Use Allowable Deductions The state sales and use tax law provides several deductions (exemptions
and exclusions) for sales and use tax purposes. There are full and partial deductions for state sales and use tax. Before any
deductions may be itemized (claimed as non taxable on line 4) on your state sales and use tax return, the gross proceeds of
sales must be reported on the state tax return (ST-3) worksheet (Items 1 and 2) . To claim a deduction on the state tax
return, it should be identified as type of deduction and the dollar amount.
The list below is used to identify some of the exemptions and/or exclusions that may be shown as a deduction.
Examples of Allowable Deductions: (Not all inclusive. May not be applicable to all forms.)
Sales for resale
Trade-ins
Out-of-state sales
Food purchased with food stamps
Exemptions:
Sales Tax Holiday exempt sales
Manufacturing
1% tax reduction for purchases made by individuals age 85 or
Agriculture
older (1% tax reduction does not apply to local tax
Federal Government
calculations)
Medicine and prosthetic devices (by prescription)
Unprepared food eligible to be purchased with USDA food
Diabetic Supplies (by written authorization)
coupon (local tax applies if not specifically exempted by
Gasoline sales
the local tax)
Installation charges (separately stated on invoice)
You are required to maintain records that will support all deductions claimed on this return. A further explanation of
deductions is available by obtaining a copy of the Department’s Sales and Use Tax Manual which is located on our
website: dor.sc.gov.
Note: Sales that are exempt from the state sales and use tax rate are generally exempt from the local tax rate. However, it is
important to note that certain amounts itemized as a state sales tax deduction on Item 4 and subtracted on Item 5 of the
state tax worksheet (reverse side of ST-3) may be subject to a local tax since the local tax may not specifically provide such
an exemption. [For instance: 1% of the state sales tax and use rate for individuals age 85 or older is excluded from the state
sales and use tax calculations. Therefore, an amount which is equivalent to 1% of gross proceeds of sales to such an
individual is allowed as a deduction from gross proceeds of sales for state sales and use tax purposes. However, the total
amount (gross proceeds of sale) of such a sale is subject to all applicable local sales and use taxes since the local taxes
have no such exemption.] See ST-389 instruction for additional information if local taxes are applicable.
Sales of unprepared foods are exempt from the State sales and use tax rate and must be entered here. However, local taxes
still apply to sales of unprepared foods unless the local tax law specifically exempts such sales. As a result, sales that are
subject to a local tax must be entered on Item 1 of Form ST-389 (local sales tax worksheet).
Item 5: Total Amount of Deductions Enter the total of Column B here and on line 2 on front of ST-3.
Item 6: Net Sales and Purchases Item 3 minus Item 5. Total should agree with line 3 on front of ST-3.
ST-3 - CALCULATION OF 6% SALES AND USE TAX
STEP 2
IMPORTANT: Complete all lines indicated with a delta ( ) beside it, even if the amount to be reported is zero.
Line 1: Gross Proceeds of Sales Enter the gross proceeds of sales, rentals, use tax and withdrawals of inventory for own
use. Enter the total from Item 3 of your worksheet. Do not include sales tax collected in this amount.
Line 2: Total Amount of Deductions Enter the total amount of deductions from Item 5 of your worksheet.
Line 3: Net Taxable Sales Line 1 minus line 2.
Line 4: State Sales and Use Tax Multiply line 3 x 6% (.06).
ST-3 - ENTERING TAX FROM ST-389
STEP 3
REMINDER: ST-389 must be completed and attached for all additional taxes. If this section does not apply, go to line 6 of
the ST-3. See ST-389 instructions for further information on the applicable taxes.
Line 5: Total Local Taxes Due Enter total from Column B, line 2, page 5 of 6 of form ST-389.
Line 6: TOTAL STATE AND LOCAL TAXES DUE Add lines 4 and 5.
DETERMINE TOTAL DISCOUNT CLAIMED ON RETURN
STEP 4
If your return or payment is received after the due date, go to line 8.
Line 7: Taxpayer's Discount A taxpayer's discount may be claimed for timely filing a sales and use tax return when the
taxes due on the return are paid in full and by the due date. No discount is allowed if the return or payment is received after
the due date. The discount is computed as follows:
If your total tax liability shown on line 6 above is less than $100, the discount rate is 3% (.03) of line 6.
If your total tax liability shown on line 6 above is $100 or more, the discount rate is 2% (.02) of line 6. Deduct this amount
from line 6.
Note: Discounts are not allowed to exceed $3,000 per taxpayer (for all locations) during any one South Carolina fiscal year,
which covers payments made from July 1 through June 30. This includes all returns which become due during this period
(returns for June through May). The $3,000 maximum discount is calculated based on the total taxes due (sales/use and
local taxes) on the return.
Taxpayers who file and pay electronically are allowed a $3,100 maximum discount. The discount amount is $10,000 for
out-of-state retailers who cannot be required to register for sales and use tax but who voluntarily register to collect and remit
the tax. However, you must receive prior approval from the Department of Revenue for the $10,000 discount.
When claiming the discount amount allowed on tax return, taxpayer must not claim a discount amount that exceeds the
maximum amount allowed. Any discount amount claimed in excess of the maximum amount allowed will be assessed for the
difference.
ST-3 - DETERMINE TOTAL STATE & LOCAL AMOUNT DUE
STEP 5
Line 8: Net Tax Payable Line 6 minus line 7.
Line 9: Penalty and Interest If you fail to file your return or fail to pay the taxes when they are due, enter the total of
Penalty and Interest, using instructions below or visit mydorway.dor.sc.gov.
PENALTY FOR FAILURE TO FILE A RETURN: Five percent (.05) of the amount of tax due (from line 6 on the front of the
return) for each month or fraction of a month of delinquency, not to exceed twenty-five percent (.25) of the amount of tax
due.
PENALTY FOR FAILURE TO PAY TAX DUE: The penalty is one-half of one percent (.005) of the amount of tax due (the
total of line 6 on the front of the return) for each month or fraction of a month of delinquency, not to exceed a total of
twenty-five percent (.25) of the amount of tax due. The penalty for failure to file and pay must be combined and entered as a
total on line 9.
INTEREST: Interest is assessed in accordance with Sections 6621 and 6622 of the Internal Revenue Code. Rates are
based on the prime rate, subject to change quarterly and are compounded daily.
Line 10: Total Amount Due Enter the total of lines 8 and 9.
ST-3 - SIGNATURE
STEP 6
Sign and date your return. All submitted forms must be completed with a valid file number (retail license or use tax
registration number) and period covered.
DON'T FORGET - Returns are past due if postmarked after the 20th of the month.
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