South Carolina Information Letter No. 20-23 clarified that COVID-19-related surcharges, takeout charges, and the like are subject to sales tax. The information letter, released August 5, “remind[ed]” taxpayers that the 6% sales tax applies to “gross proceeds of sales,” which includes all value that comes from the sale of tangible personal property, such as restaurant meals. The guidance provided four examples of taxable surcharges added to restaurant meals, including coronavirus-related surcharges added to meals ordered through online food delivery marketplaces. Under this guidance, such marketplace facilitators are responsible for collecting and remitting tax on these surcharges.
