Sales Tax Activities
Sales Tax State Activity Update - December 2006
South Carolina is Making a List and checking it Twice of Taxable Telecom Services
South Carolina has released a Revenue Ruling that discusses the application of South Carolina sales and use tax to communication services.
The purpose of this ruling was to summarize longstanding Department opinion concerning the taxability of various communications services that the Department has held in the past as being subject to tax, whether through formal advisory opinions, audit or informal advice provided to taxpayers.
Charges for internet access are not taxable during the Congressional moratorium on such charges, however charges by a third party to access or use that third party's website will continue to be subject to sales tax.
The following communication services are subject to tax:
- Telephone services (not specifically exempt under Code Section 12-36-2120(11) provided via the traditional public switched telephone network (PSTN), a wireless transmission system, or a voice over Internet (VoIP) system;
- Teleconferencing services;
- Paging services;
- Answering services;
- Cable television services;
- Satellite programming services and other programming transmission services;
- Fax transmission service;
- Voice Mail messaging services;
- E-Mail services;
- Electronic filing of a tax return by a person who did not prepare the return;
- Database access transmission service (on-line information services) such as legal research, credit reporting/research services and charges to access an individual website;
- Prepaid wireless calling arrangements;
- 900/976 telephone service.
The following charges are not subject to tax:
- Telephone services specifically exempt under Code Section 12-36-2120(11) such as toll charges, carrier access charges and customer access line charges established by the FCC and the South Carolina PSC;
- Telegraph messages;
- Communication services involving automatic teller machines;
- Data processing services (as defined under section 12-36-910(C);
- Computer data information services provided by a cooperative when the database information has been assembled by and for the exclusive use of cooperative members;
- Electronic filing of a return when it is filed by the person who prepared the return.
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