South Carolina Software Distribution and Maintenance Agreement
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FAQ
Software distribution agreements are necessary for distributors to know how and where to distribute a developer's software, and for developers to define their relationship with distributors. See what goes into a solid software distribution agreement. This article is for informational purposes.
The statewide Sales &? Use Tax rate is six percent (6%).
There are 23 states that do not tax digital products. 4 states do not have a retail sales tax at all; these include: Delaware, Montana, New Hampshire and Oregon. For the states that tax digital products, the tax rate varies from 1% to 7%, depending upon the state and the type of digital good.
A charge for the sale or renewal of a warranty, maintenance, or similar service contract for computer software that was delivered solely by electronic means is not subject to the sales and use tax, provided no part of the software (including back-up diskettes and tapes) that is covered by the maintenance agreement is ...
No, digital products are not taxed in South Carolina.
Some customers are exempt from paying sales tax under South Carolina law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Software sold and delivered by electronic means via a modem and telephone from a remote location is not subject to the sales and use tax, provided no part of the software, including back- up diskettes and tapes, is delivered by tangible means.
