Remote Sellers

Beginning November 1, 2018, remote sellers who meet certain thresholds must obtain a South Dakota sales tax license and pay applicable sales tax.*

*This implementation date excludes the defendents in the South Dakota v. Wayfair case.

WHO THIS IMPACTS

A remote seller is a business without a physical presence in South Dakota that meets one or both of the following criteria in the previous or current calendar year:

  • Your business’s gross revenue from sales into South Dakota exceeded $100,000; or
  • Your business made sales for delivery into South Dakota in 200 or more separate transactions.

*Gross sales or transactions include the sale of tangible personal property, any products transferred electronically, or services.

HOW TO BECOME LICENSED

This implemetation date is a result of a special legislative session and the signing of Senate Bill 1 into law.

Frequently Asked Questions

Who is a remote seller?

A remote seller is a business without a physical presence in South Dakota. 



Do I need a South Dakota sales tax license?

Any business with a physical presence in South Dakota is currently and will continue to be required to be licensed for sales tax collection.

*Beginning November 1, 2018, South Dakota law also requires any business without a physical presence in South Dakota to obtain a South Dakota sales tax license and pay applicable sales tax if the business meets one or both of the following criteria in the previous or current calendar year:

  1. The business has gross sales into South Dakota exceeding $100,000; or
  2. The business has 200 or more separate transactions into South Dakota.

Gross sales or transactions include the sale of tangible personal property, any products transferred electronically, or services.

Note: These minimum thresholds do not apply to any business with a physical presence in South Dakota.

*This implementation date excludes the defendents in the South Dakota v. Wayfair case.

For more information on these thresholds, click here.



How do I obtain a sales tax license?

The Department of Revenue offers a convenient, online application for a variety of taxes, including sales tax. To get started, click here.

You can also register through the Streamlined Sales Tax Project. To get started, click here.



How do I file and pay taxes?

You can file, pay, and amend your tax returns by using South Dakota's online tax filing system EPath.



Will the state go back and try to recover taxes that weren’t collected and paid on purchases made prior to the ruling?

No, the state cannot go back and retroactively collect sales tax from a remote seller. The state is legally precluded from enforcing retroactive tax collection on remote sellers per SDCL 10-64-6.



Once a business reaches one or both of the thresholds, will the state tax all of that company’s in-state transactions from the previous year?

Once a business meets either of the thresholds of SDCL 10-64-2 in the previous calendar year, the business is required to become licensed and remit South Dakota sales tax for the following year.

When a business meets either the thresholds of SDCL 10-64-2 during the current calendar year, the business is required to become licensed and remit South Dakota sales tax from that point forward.

However, the Department is legally precluded from enforcing retroactive tax collection on remote sellers per SDCL 10-64-6.



What are the tax rates?

The South Dakota state sales tax rate is 4.5 percent. In addition, municipal sales tax may apply to your transactions. You can access the municipal tax rates for one or multiple addresses by using TaxMatch.

Our rates are also available in our Municipal Tax Bulletin.



Does South Dakota require me to file separate returns for state and municipal sales taxes?

No, South Dakota state and municipal taxes are reported on the same sales tax return.



Do I need to obtain a sales tax license in other states?

If you sell products or services in other states, you may be required to pay sales tax in that state. You can access more information on other states' laws and contact information by using our state-by-state directory. If you are unable to contact other states, contact the South Dakota Department of Revenue for assistance.

You can connect with one of our business tax agents by clicking on the live chat button on the lower, right corner of this webpage. You can also contact the South Dakota Department of Revenue toll free at (800) 829.9188(800) 829.9188 or by email at bustax@state.sd.us.



Still have questions?

You can connect with one of our business tax agents by clicking on the live chat button on the lower, right corner of this webpage.

You can also contact the South Dakota Department of Revenue toll free at (800) 829.9188(800) 829.9188 or by email at bustax@state.sd.us.

 



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