ACTION NEEDED before May 20, 2020 for over-collection of sales and use tax in multiple city regions of South Carolina
Overview
Avalara recently determined that between April 1, 2020 and April 28, 2020, transactions applied to addresses in multiple cities in South Carolina may have returned a 1% over-collection of Sales and Use tax.
Environment
AvaTax
Resolution
Please take these mitigation steps:
Identify affected transactions
Review your sales and use transactions for the South Carolina city regions below from April 1 through April 28, 2020, to see which transactions calculated with an unexpected sales or use tax rate of 1%.
| ANDREWS | FOUNTAIN INN | NORTH AUGUSTA | YEMASSEE |
| BLYTHEWOOD | GOOSE CREEK | NORTH CHARLESTON | |
| CLEMSON | HONEA PATH | SUMMERVILLE | |
| COLUMBIA | IRMO | WARE SHOALS |
To find affected transactions, review transactional data on the Transactions tab in AvaTax, or run a Tax Return - Sales and Sellers Use Tax Report.
Recalculate sales tax on the affected transactions
You will need to complete this review and make any necessary changes on or before May 20, 2020.
- To recalculate sales tax, import transactions, or recalculate from your accounting system.
- Next, refund your customer the 1% sales or use tax rate.
Note: It is unlawful to over-collect and not remit the over-collected tax. If you choose not to recalculate and refund the over-collected tax, you must report and remit the over-collected tax.
If needed, contact your tax professional for guidance on how to report the overcharged tax.