Who Needs A License?
Any organization with a physical presence in South Dakota is needed to be accredited for sales taxation. Gross sales or deals include the sale of tangible individual residential or commercial property, any items moved electronically, or services. The minimum limits listed below do not apply to businesses with a physical presence in South Dakota. South Dakota law likewise needs any organization without a physical existence 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 present fiscal year:
How To Get A License
- Register for a South Dakota sales tax license utilizing the online Tax License Application.
- Register with numerous states through the Streamlined system at streamlinedsalestax.org.
Remote Sellers and Marketplace Providers
Remote Sellers
Remote sellers who fulfill certain thresholds should acquire a South Dakota sales tax license and pay applicable sales tax. (Per SDCL 10-64) *
A remote seller is a service without a physical presence in South Dakota that fulfills the following requirements in the previous or present calendar year:
- Your service's gross income from sales into South Dakota surpassed $100,000
* Gross sales or transactions consist of the sale of tangible personal residential or commercial property, any items transferred electronically, or services.
Marketplace Providers
Marketplace service providers who meet a certain limit needs to acquire a South Dakota sales tax license and pay applicable sales tax (Per SDCL 10-65).
Who This Impacts
As of March 1, 2019, market suppliers have been needed to certify their service and remit suitable sales tax on all sales it helps with into South Dakota if:
- The market company is a remote seller; or
- The marketplace company helps with the sales of a minimum of one marketplace seller that fulfills the remote seller requirements; or
- The marketplace company helps with the sales of 2 or more marketplace sellers that, when the sales are combined, fulfills the remote seller criteria.
If business does not have a physical existence however has more than $100,000 in gross sales into South Dakota in the previous or present calendar year, business is required to accredit their company and remit applicable 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 uses to the gross receipts of all retail sales, including the sale, lease or leasing of concrete individual residential or commercial property or any item transferred digitally, and the sale of all services. Department of Revenue tax reality pages discuss how sales and use tax uses to each specific industry.
07/23
Exemptions from Sales Tax
There are 4 factors that product or services would be exempt from South Dakota sales tax.
1. The buyer is a tax exempt entity;
2. The product or service is particularly exempt from sales tax;
3. The purchaser sends a claim for exemption;
4. The item is provided to a point outside of the State of South Dakota.
Exempt Entities
State law excuses specific entities from paying South Dakota sales tax or utilize tax on their purchases. Relief firms and spiritual and private schools must use to the department and be approved for exempt status. Their exemption number need to be consisted of on the exemption certificate. The exemption numbers for relief agencies consist of an "RA"; independent schools include an "RS". To find out more about exempt entities, please evaluate the Sales Tax Guide (PDF) and Exempt Entity Tax Fact (PDF). These entities consist of:
- United States government companies
- State of South Dakota
- Indian people
- Public or municipal 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 hospitals
- Relief companies
- SD spiritual and private schools
Entities, noted above, that dream to request a sales & utilize tax exempt status might do so by sending an application to the Department. We have actually supplied a link listed below.
A non-profit charitable company that devotes its resources exclusively to the relief of the poor, distressed or underprivileged and have actually been acknowledged as an exempt organization under 501( c )( 3) of the Internal Revenue Code may certify. Additional qualifications include an actual physical location in South Dakota and the entity need to be providing actual services. For extra details please see our Exempt Entity Tax Fact.
Relief Agencies that qualify are required to restore their application every five years.
SALES TAX EXEMPT STATUS APPLICATION
A seller does not have to collect sales tax when a buyer provides a seller a completed exemption certificate at the time of sale. The buyer can give a "single purchase" certificate for just one transaction or a blanket certificate that uses to future purchases of certifying exempt products. Exemption certificates do not end unless the details on the certificate changes; however, we recommend updating exemption certificates every three to 4 years. To learn more about exempt entities, please evaluate 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 planned to be resold; or
3. Products or services used for an exempt function.
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 apply to the sales of the very same items and services, have the exact same tax rates and have comparable laws. The distinction is in how the taxes are used. Use tax applies when state and appropriate local sales tax has not been paid on product or services (consisting of services and products moved electronically) that are used, stored, or consumed in South Dakota. Situations occur when South Dakota sales tax might not have been charged and utilize tax is due consist of:
- When items are bought from an unlicensed out-of-state vendor;
- When untaxed retail stock is gotten rid of for individual or shop use;
When a product acquired from an out-of-state vendor is provided in South Dakota, however the other state's tax is improperly 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 changes in your organization please utilize our online forms to send the changes.
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 owner to another, from sole proprietor to a partnership, a change from sole proprietor to a corporation, or a merger, needs a new tax license. You should cancel your license within 15 days and instantly submit a last return and pay all tax due if:
1. You close your organization;
2. You offer your service; or
3. The ownership of business modifications.
How to Cancel Your License
If you submit digitally, you can cancel your license using our online Filing and Tax Payment website. If you file a paper return, please examine the out-of-business box in the upper right corner of your return, listing the last date of organization.
Address Change
Notify the department in composing if your mailing address or your organization place modifications. Include the brand-new address info, reliable date of the change, your taxpayer number, and service name.
How to Change Your Address
Please use our Change of Address Form to update your address. If you file electronically, you can alter your address using our online Filing and Tax Payment website. If you file a paper return, you can likewise make the updates on your tax return.
Change of Accounting
If your company alters your accounting technique with the Irs you must submit alert to the Department. You are qualified to start reporting under your brand-new accounting technique the first day of the following month. To alter your accounting method, please fill out our Change of Accounting Method type. Businesses can report sales based upon 2 various accounting techniques.
- When using the accrual technique, taxes must be paid on all sales made during the reporting period, even if you have not gotten payment. Uncollectable bills you compose off as uncollectible in your books and records and are qualified to be subtracted for federal income tax functions.
- When you use the cash approach of accounting, you report gross receipts and pay tax as you receive payments. No bad financial obligations are allowed on the money basis.
Sales Tax Statistical Reports
The most recent Sales Tax Statistical Reports are organized in the expand/collapse regions at the bottom of this page. In all cases when you select a month, you will be viewing data compiled from returns filed with the Department throughout that month. It might cover a range of taxpayer filing periods, such as monthly, bi-monthly, semi-annually etc. It consists of returns declared the current period and those applied for previous durations. Historical Tax Statistical Reports are likewise available.
Streamlined Sales Tax Project
The approach of the Streamlined Sales Tax Project is simple: the state and businesses should interact to develop easier, more consistent sales and utilize tax systems.
Streamlined Sales Tax Registration System
To sign up, you may utilize the Streamlined Registration System. Alternatively, sellers may likewise utilize the Streamlined Sales Tax Registration System to develop 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 created to assist companies or people enter into compliance with South Dakota's sales and use tax laws. You can stay confidential while examining whether this program is best for your business. However, if you choose to take part in the program, you will require to use in writing. If you currently have a South Dakota tax license for sales and utilize tax, you can not take part in this program.
Benefits of Participating
- Possible waiver of the charge charges.
- Agreement that the Department will not pursue criminal prosecution.
- Sixty days to determine the liability and prepare the returns
Qualifying for Voluntary Disclosure
To get approved for a voluntary disclosure arrangement, you or your organization:
- need to not be presently signed up to gather and pay sales, use, and professional's excise tax in South Dakota,.
- Must not have actually gathered sales tax,.
- must not have been gotten in touch with by either the Department of Revenue or the Multistate Tax Commission to arrange an audit, or to complete a nexus survey,.
- are not under audit for any South Dakota tax,.
- are not currently under investigation by any police, and you are not currently the topic of a civil action or a prosecution including the sales and utilize tax covered by the agreement,.
consent to register, submit 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 verify the quantity of your liability and the precision of your declarations upon demand.
Application Process
Anyone can contact the Department anonymously to discover out more about the program. To stay confidential when making the formal application, you may engage an agent, such as a tax preparer, accounting professional or lawyer. Your request can be emailed to TDU@state.sd.us or sent by mail to the South Dakota Department of Revenue at 445 E. Capitol Ave Pierre, SD 57501.
Your written demand needs to include the following details:
1. A description of your activities and the date the activities started, including whether you do any of the following: - own or lease residential or commercial property in the state.
- have employees or independent sales representatives soliciting sales in the state.
- have stock situated in the state.
- make shipments into the state and, if so, the means of transport utilized
2. A 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 called previously by South Dakota or the Multistate Tax Commission Nexus Program.
You might discover it helpful to complete a voluntary disclosure with the Multistate Tax Commission if you have multiple states in which you need to register.
Multistate Disclosure Form
Business Education Program
Basic Sales Tax Seminar
These three-hour seminars are kept in Sioux Falls, Rapid City, and Mitchell three to four various times throughout the year. Webinars will be held occasionally. Three CPE credits and/or 0.3 CEU credits are awarded for those who make an application for them and participate in the complete workshop. Each workshop covers:
- How and when to request a tax license.
- Exemptions from sales and use 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 two times 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 obtain them and participate in each whole seminar. If both workshops are gone to, an individual 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 in between South Dakota and Minnesota tax laws.
- How these distinctions may affect your company.
- Practical pointers on how to manage sales and use tax obligations 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 when in the fall in North Dakota. A total of 3.0 CPE and/or.3 CEU credits are granted for the Sales Tax workshop, and 2.0 CPE and/or.2 CEU credits are awarded to the Construction Contractors seminar if asked for. If a private attends both seminars, or a complete day, 5.0 CPE and/or 0.5 CEU credits are awarded.
ND/SD Border Tax Seminar - Sales Tax
- Requirements to sign up in SD and ND.
- Awareness of significant differences between SD and ND tax laws.
- How the distinctions in between state tax laws might impact your organization.
- Practical suggestions on how to handle sales and use 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 in between SD and MN taxes for professionals.
- Prime and subcontractors.
- Point of taxation.
- Special jurisdictions/tribal agreements.
- Owner supplied materials.
- Qualified utilities.
- Filing returns
Find Upcoming Seminars
Sales Tax Rate Charts
In the past, organization owners have asked if we could offer rate charts. For your benefit, we have actually put together charts for each of the existing sales tax rates your company may need. The charts are available under or Forms/ Resources page. We have likewise offered a link listed below.
