Who Needs A License?
Any organization with a physical presence in South Dakota is needed to be accredited for sales tax collection. Gross sales or transactions include the sale of tangible individual residential or commercial property, any items transferred digitally, or services. The minimum limits noted below do not use to companies with a physical existence in South Dakota. South Dakota law likewise needs any organization without a physical presence in South Dakota to acquire a South Dakota sales tax license and pay appropriate sales tax if business meets the following criteria in the previous or current calendar year:
How To Get A License
- Register for a South Dakota sales tax license using the online Tax License Application.
- Register with several states through the Streamlined system at streamlinedsalestax.org.
Remote Sellers and Marketplace Providers
Remote Sellers
Remote sellers who meet specific limits must acquire a South Dakota sales tax license and pay relevant sales tax. (Per SDCL 10-64) *
A remote seller is a service without a physical presence in South Dakota that meets the following requirements in the previous or existing calendar year:
- Your business's gross profits from sales into South Dakota surpassed $100,000
* Gross sales or deals include the sale of concrete individual residential or commercial property, any items transferred electronically, or services.
Marketplace Providers
Marketplace service providers who satisfy a specific limit should acquire a South Dakota sales tax license and pay appropriate sales tax (Per SDCL 10-65).
Who This Impacts
Since March 1, 2019, marketplace suppliers have actually been required to accredit their organization and remit relevant sales tax on all sales it helps with into South Dakota if:
- The marketplace service provider is a remote seller; or
- The market provider assists in the sales of at least one market seller that satisfies the remote seller criteria; or
- The market company assists in the sales of two or more market sellers that, when the sales are integrated, satisfies the remote seller requirements.
If the company does not have a physical presence however has more than $100,000 in gross sales into South Dakota in the previous or existing fiscal year, business is required to certify their service and remit appropriate sales tax.
Additional Resources
Marketplace Tax Fact (PDF)
Remote Seller Bulletin (PDF)
Streamlined Sales Tax Remote Sellers Page
2023 Legislative Updates
Sales Tax Facts
Sales tax applies to the gross invoices of all retail sales, consisting of the sale, lease or rental of concrete individual residential or commercial property or any product moved electronically, and the sale of all services. Department of Revenue tax truth pages discuss how sales and use tax applies to each particular industry.
07/23
Exemptions from Sales Tax
There are four factors that items and services would be exempt from South Dakota sales tax.
1. The purchaser is a tax exempt entity;
2. The service or product is specifically exempt from sales tax;
3. The buyer sends a claim for exemption;
4. The item is delivered to a point beyond the State of South Dakota.
Exempt Entities
State law excuses certain entities from paying South Dakota sales tax or utilize tax on their purchases. Relief firms and spiritual and independent schools should use to the department and be approved for exempt status. Their exemption number must be consisted of on the exemption certificate. The exemption numbers for relief agencies consist of an "RA"; personal schools consist of an "RS". For additional information about exempt entities, please examine the Sales Tax Guide (PDF) and Exempt Entity Tax Fact (PDF). These entities include:
- United States federal government companies
- State of South Dakota
- Indian tribes
- Public or community corporations of the State of South Dakota
- Municipal or volunteer fire or ambulance departments
- Public schools, consisting of K-12, universities and technical institutes that are supported by the State of South Dakota or public or municipal corporations of South Dakota.
- Non-profit medical facilities
- Relief companies
- SD religious and personal schools
Entities, listed above, that desire to make an application for a sales & utilize tax exempt status may do so by submitting an application to the Department. We have actually offered a link below.
A non-profit charitable company that dedicates its resources exclusively to the relief of the poor, distressed or impoverished and have actually been recognized as an exempt company under 501( c )( 3) of the Internal Revenue Code may certify. Additional credentials consist of a real physical location in South Dakota and the entity should be providing real services. For extra information please see our Exempt Entity Tax Fact.
Relief Agencies that qualify are needed to renew their application every five years.
SALES TAX EXEMPT STATUS APPLICATION
A seller does not have to gather sales tax when a buyer gives a seller a completed exemption certificate at the time of sale. The buyer can provide a "single purchase" certificate for just one transaction or a blanket certificate that applies to future purchases of qualifying exempt products. Exemption certificates do not expire unless the details on the certificate changes; nevertheless, we advise upgrading exemption certificates every three to four years. To learn more about exempt entities, please examine the Sales Tax Guide (PDF) and Exempt Entity Tax Fact (PDF). The exemption certificate is utilized to:
1. Claim exemption for:
2. Products or services meant to be resold; or
3. Products or services used for an exempt purpose.
4. Document that the purchaser is an exempt entity.
Exemption Certificate
What is Use Tax?
Use Tax is the counterpart of the South Dakota sales tax. The two taxes use to the sales of the same products and services, have the exact same tax rates and have similar laws. The distinction remains in how the taxes are used. Use tax uses when state and suitable community sales tax has not been paid on products and services (including products and services transferred electronically) that are used, kept, or consumed in South Dakota. Situations take place when South Dakota sales tax may not have been charged and use tax is due include:
- When items are bought from an unlicensed out-of-state supplier;
- When untaxed retail inventory is gotten rid of for personal or store usage;
When a product bought from an out-of-state supplier is provided in South Dakota, however the other state's tax is incorrectly charged; and
- When a purchase is made in another state then brought into South Dakota and the item was not taxed or was taxed at a lower tax rate than applies in South Dakota, you owe usage tax.
Changes In Your Business? Let Us Know
If there are modifications in your service please use our online types to submit the modifications.
Cancel Your License
Sales or contractor's excise tax licenses are not transferable. A change in ownership or legal company, such as from one sole proprietor to another, from sole proprietor to a partnership, a modification from sole owner to a corporation, or a merger, requires a brand-new tax license. You must cancel your license within 15 days and right away file a final return and pay all tax due if:
1. You close your service;
2. You offer your organization; or
3. The ownership of business changes.
How to Cancel Your License
If you submit digitally, you can cancel your license utilizing our online Filing and Tax Payment website. If you submit a paper return, please check the out-of-business box in the upper right corner of your return, listing the last date of company.
Address Change
Notify the department in composing if your mailing address or your business place modifications. Include the new address information, reliable date of the change, your taxpayer number, and business name.
How to Change Your Address
Please utilize our Change of Address Form to upgrade your address. If you submit electronically, you can alter your address utilizing our online Filing and Tax Payment portal. If you submit a paper return, you can likewise make the updates on your income tax return.
Change of Accounting
If your company alters your accounting technique with the Internal Revenue Service you must send alert to the Department. You are qualified to begin reporting under your brand-new accounting technique the first day of the following month. To change your accounting technique, please fill out our Change of Accounting Method kind. Businesses can report sales based on two various accounting techniques.
- When using the accrual method, taxes must be paid on all sales made throughout the reporting duration, even if you have not gotten payment. Uncollectable bills you compose off as uncollectible in your books and records and are qualified to be deducted for federal earnings tax purposes.
- When you use the money technique of accounting, you report gross invoices and pay tax as you get payments. No uncollectable bills are enabled on the money basis.
Sales Tax Statistical Reports
The most current Sales Tax Statistical Reports are arranged in the expand/collapse regions at the bottom of this page. In all cases when you select a month, you will be viewing information compiled from returns filed with the Department throughout that month. It might cover a range of taxpayer filing durations, such as regular monthly, bi-monthly, semi-annually etc. It includes returns submitted for the present duration and those applied for previous periods. Historical Tax Statistical Reports are likewise offered.
Streamlined Sales Tax Project
The viewpoint of the Streamlined Sales Tax Project is simple: the state and businesses should interact to produce easier, more consistent sales and utilize tax systems.
Streamlined Sales Tax Registration System
To register, you may use the Streamlined Registration System. Alternatively, sellers may also use the Streamlined Sales Tax Registration System to establish a sales tax account with the 23 SSUTA member states in a single registration.
Register Now
Streamlined Sales Tax Useful Links
Streamlined Sales Tax FAQs
Rates & Boundary Database Instructions
Simplified Electronic Return
SD Information for Streamlined Sales Tax Participants (PDF).
- SD Tax Matrix Library of Definitions.
Tax Administration Practices
Sales & Use Tax Voluntary Disclosure Program
South Dakota's Voluntary Disclosure Program is designed to assist services or people enter into compliance with South Dakota's sales and utilize tax laws. You can remain confidential while investigating whether this program is right for your business. However, if you decide to take part in the program, you will require to apply in composing. If you currently have a South Dakota tax license for sales and use tax, you can not participate in this program.
Benefits of Participating
- Possible waiver of the penalty charges.
- Agreement that the Department will not pursue criminal prosecution.
- Sixty days to determine the liability and prepare the returns
Getting Approved For Voluntary Disclosure
To get approved for a voluntary disclosure arrangement, you or your company:
- should not be currently registered to gather and pay sales, usage, and specialist's excise tax in South Dakota,.
- Must not have actually gathered sales tax,.
- need to not have actually been gotten in touch with by either the Department of Revenue or the Multistate Tax Commission to arrange an audit, or to finish a nexus survey,.
- are not under audit for any South Dakota tax,.
- are not currently under examination by any law enforcement company, and you are not currently the topic of a civil action or a criminal prosecution involving the sales and use tax covered by the arrangement,.
consent to register, file returns, and pay the tax due for the look-back period within the time frame specified in the contract,.
- will make records offered for audit to confirm the quantity of your liability and the precision of your declarations upon demand.
Application Process
Anyone can contact the Department anonymously to learn more about the program. To stay anonymous when making the formal application, you might engage an agent, such as a tax preparer, accountant or attorney. Your request can be emailed to TDU@state.sd.us or mailed to the South Dakota Department of Revenue at 445 E. Capitol Ave Pierre, SD 57501.
Your composed request needs to include the following details:
1. A description of your activities and the date the activities began, including whether you do any of the following: - own or lease residential or commercial property in the state.
- have employees or independent sales agents soliciting sales in the state.
- have inventory located in the state.
- make shipments into the state and, if so, the ways of transport used
2. A price quote of the tax liability for previous tax periods.
3. A statement of whether you have actually gathered South Dakota taxes.
A declaration that you have not been gotten in touch with formerly by South Dakota or the Multistate Tax Commission Nexus Program.
You may find it helpful to finish a voluntary disclosure with the Multistate Tax Commission if you have several states in which you require to sign up.
Multistate Disclosure Form
Business Education Program
Basic Sales Tax Seminar
These three-hour workshops are held in Sioux Falls, Rapid City, and Mitchell 3 to 4 various times throughout the year. Webinars will be held occasionally. Three CPE credits and/or 0.3 CEU credits are granted for those who apply for them and participate in the full seminar. Each workshop covers:
- How and when to make an application for a tax license.
- Exemptions from sales and utilize taxes.
- Use tax.
- Municipal taxes.
- Purchases for resale.
- How to submit returns, both by paper and digitally
MN/SD Border Tax Seminars
A three-hour MN/SD Border Sales Tax Seminar and a three-hour ND/SD Border Construction Contractors Seminar are held twice a year in Sioux Falls, South Dakota. A total of 3.0 CPE credits and/or 0.3 CEU credits are granted for each workshop for those who look for them and participate in each whole seminar. If both workshops are attended, a person can make 6.0 CPE credits and/or 0.6 CEU credits.
MN/SD Border Tax Seminar - Sales Tax
- Requirements to register in SD and MN.
- Awareness of major differences between South Dakota and Minnesota tax laws.
- How these distinctions may affect your company.
- Practical suggestions on how to manage sales and use tax commitments for both states.
- Streamlined Sales Tax Project.
- Filing returns
MN/SD Border Tax Seminar - Construction Contractors
ND/SD Border Tax Seminars
A three-hour ND/SD Border Sales Tax Seminar and a two-hour ND/SD Border Construction Contractors Seminar are held two times a year, when in the spring in South Dakota and once in the fall in North Dakota. A total of 3.0 CPE and/or.3 CEU credits are granted for the Sales Tax seminar, and 2.0 CPE and/or.2 CEU credits are awarded to the Construction Contractors seminar if requested. If an individual participates in both seminars, or a complete day, 5.0 CPE and/or 0.5 CEU credits are granted.
ND/SD Border Tax Seminar - Sales Tax
- Requirements to sign up in SD and ND.
- Awareness of major distinctions in between SD and ND tax laws.
- How the distinctions in between state tax laws may affect your business.
- Practical pointers on how to handle sales and utilize tax commitments for both states.
- Streamline Sales Tax Project.
- Available resources.
- Filing returns
ND/SD Border Tax Seminar - Construction Contractors
Topics consist of:
- Requirements for registration in SD and MN.
- Differences between SD and MN taxes for .
- Prime and subcontractors.
- Point of taxation.
- Special jurisdictions/tribal contracts.
- Owner furnished materials.
- Qualified energies.
- Filing returns
Find Upcoming Seminars
Sales Tax Rate Charts
In the past, organization owners have actually asked if we could provide rate charts. For your benefit, we have created charts for each of the existing sales tax rates your business might need. The charts are offered under or Forms/ Resources page. We have also offered a link listed below.
