--- title: "South Carolina marketplace facilitator law and 1099-K rules" description: "South Carolina marketplace facilitators are the retailer and remit sales tax; a seller whose goods sell only through them is not a retailer or licensed." canonical: https://resellerindex.com/tax/states/south-carolina/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / South Carolina # Selling on eBay, Poshmark or Etsy from South Carolina: sales tax and 1099-K rules On a marketplace sale delivered to South Carolina, the marketplace facilitator is the retailer and remits state and local sales and use tax on everything sold through its marketplace, and a person whose products are sold only through marketplace facilitators is not a South Carolina retailer and is not required to obtain a retail license. The South Carolina Department of Revenue documents we checked say nothing about a separate South Carolina 1099-K rule. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## South Carolina in short - **General sales tax:** Yes, 6% state rate - **Marketplace facilitator law:** Yes: S.C. Code Ann. §§ 12-36-70 and 12-36-71 (Act No. 21 of 2019), since Apr 26, 2019 - **When a marketplace must collect:** for a facilitator without physical presence, economic nexus when gross revenue from sales delivered into South Carolina exceeds $100,000 in the previous or current calendar year - **Form 1099-K:** No state rule stated on the pages checked ## Who collects the tax on a marketplace sale A marketplace facilitator is a retailer: it holds a South Carolina retail license and remits state and local sales and use tax on all products sold through its marketplace, whether it or a third party owns or delivers them. When a facilitator is made up of several related entities, the one that lists or advertises the products remits. ### If you sell only through marketplaces The Department says a person whose products are sold exclusively through a marketplace facilitator is not a South Carolina retailer, regardless of nexus, and is not required to obtain a retail license or remit tax on those sales. Its FAQ separately says a South Carolina seller selling from home through its own website must obtain a retail license and remit tax on orders shipped to South Carolina addresses. Registration, resale certificates and what changes when you also sell direct have their own page: [South Carolina: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/south-carolina/). The law: S.C. Code Ann. §§ 12-36-70 and 12-36-71 (Act No. 21 of 2019), effective Apr 26, 2019. > "a person whose products are sold exclusively through a marketplace facilitator is not a South Carolina retailer, regardless of whether the person has nexus with South Carolina." South Carolina Department of Revenue, [SC Information Letter #19-14, Marketplace Facilitator - New Law Effective April 26, 2019](https://dor.sc.gov/sales-use-tax-marketplace-facilitator-new-law-effective-april-26-2019), SC Information Letter #19-14 (May 7, 2019), footnote 3 > "the third party is not a retailer and, therefore, is not required to obtain a retail license or remit sales and use tax on such sales." South Carolina Department of Revenue, [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf), Marketplace question 5 > "Economic nexus exists when a person’s gross revenue from sales delivered into South Carolina exceeds $100,000 in the previous calendar year or the current calendar year." South Carolina Department of Revenue, [SC Information Letter #19-14, Marketplace Facilitator - New Law Effective April 26, 2019](https://dor.sc.gov/sales-use-tax-marketplace-facilitator-new-law-effective-april-26-2019), footnote 1 Sources: [SC Information Letter #19-14, Marketplace Facilitator - New Law Effective April 26, 2019](https://dor.sc.gov/sales-use-tax-marketplace-facilitator-new-law-effective-april-26-2019); [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf). ## South Carolina's sales tax The general state sales and use tax rate is 6%, and local sales and use taxes are added by location. Separate state rates apply to accommodations (7%) and some other items. > "General Sales and Use Tax Rate: 6%" South Carolina Department of Revenue, [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf), section C, question 1 Sources: [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf). ## Form 1099-K: South Carolina and the federal test Information Letter #19-14, the Department's sales tax FAQ chapter and its withholding page, read for this page, say nothing about a South Carolina Form 1099-K requirement. The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf); [Withholding](https://dor.sc.gov/withholding). ## Worked examples ### State tax on a $40 marketplace sale to Columbia At the 6% state rate, a $40.00 taxable item carries $2.40 of state tax, plus local sales tax for the delivery location. The facilitator remits it. ### Same seller, two channels A seller in Greenville sells $9,000 through marketplace facilitators and $3,000 from its own website to South Carolina buyers. The facilitators remit on the $9,000. The Department's FAQ says a South Carolina seller selling through its own website needs a retail license and remits tax on orders shipped to South Carolina; the 6% state rate alone on $3,000 is $180.00, before local tax. ## Edge cases and details - A facilitator remits tax regardless of whether it or a third party delivers the products, the policy manual says. - Information Letter #19-14 says a facilitator may or may not receive compensation for its services and still be a marketplace facilitator. - Accommodations carry a 7% state rate rather than 6%, according to the policy manual's rate table. - The Department's FAQ treats a store selling another person's goods on consignment as the retailer responsible for remitting the tax: in its example, a store selling a jewelry maker's pieces remits even though it does not own them, and the FAQ adds that consignment sales include sales by marketplace facilitators. ## What to do 1. If every South Carolina sale goes through marketplace facilitators, keep the Department's FAQ answer and your marketplace sales reports with your records. 2. If you also sell direct to South Carolina buyers, read the Department's FAQ on retail licenses and check with a tax professional. 3. For remote seller thresholds, the Department points to SC Revenue Ruling #18-14 on economic nexus. ## Common questions ### Do I need a South Carolina retail license if I only sell on marketplaces? No, according to the Department. A person whose products are sold only through marketplace facilitators is not a South Carolina retailer, regardless of nexus, and is not required to obtain a retail license. ### When did South Carolina's marketplace facilitator law take effect? April 26, 2019, when Act No. 21 of 2019 was enacted, according to Information Letter #19-14. ### Does South Carolina have its own 1099-K threshold? The Department of Revenue documents we checked say nothing about a South Carolina 1099-K rule. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [South Carolina: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/south-carolina/) - [Rhode Island: sales tax and 1099-K rules](https://resellerindex.com/tax/states/rhode-island/) - [South Dakota: sales tax and 1099-K rules](https://resellerindex.com/tax/states/south-dakota/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes South Carolina's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - South Carolina Department of Revenue: [SC Information Letter #19-14, Marketplace Facilitator - New Law Effective April 26, 2019](https://dor.sc.gov/sales-use-tax-marketplace-facilitator-new-law-effective-april-26-2019), dated May 7, 2019; read Oct 19, 2026. Act No. 21 of 2019, retailer status, economic nexus, marketplace-only sellers. - South Carolina Department of Revenue: [Policy Manual Chapter 23, Frequently Asked Questions (September 2025)](https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/Chapter%2023%20-%20Frequently%20Asked%20Questions.pdf); read Oct 19, 2026. 6% rate, marketplace FAQs, consignment, home website sellers. - South Carolina Department of Revenue: [Withholding](https://dor.sc.gov/withholding); read Oct 19, 2026. W-2 and 1099 upload page checked; no 1099-K rule stated. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. 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