Marketplace Providers

Beginning March 1, 2019, marketplace providers who meet certain thresholds must obtain a South Dakota sales tax license and pay applicable sales tax.


Marketplace providers are required to remit sales tax on all sales it facilitates into South Dakota if the thresholds of 200 or more transactions into South Dakota or $100,000 or more in sales to South Dakota customers are met.


Marketplace providers can voluntarily comply at any time prior to March 1, 2019.

To learn more, view our Marketplace Bulletin.

Frequently Asked Questions

What types of marketplaces are there?

Fulfillment Service

  • The marketplace connects seller to buyers and handles all transaction aspects (order, payment, warehousing, and shipping).
  • SB 2 applies to this type of marketplace provider.
  • Example: Fulfillment by Amazon.


  • The marketplace connects sellers to buyers and processes the orders and payments.
  • The marketplace seller is usually responsible for shipping.
  • SB 2 applies to this type of marketplace provider.
  • Example: eBay and Etsy.

Virtual Classified Ads

  • The marketplace advertises goods and services for sale and connects sellers to buyers but has no other involvement with the transaction.
  • SB 2 does NOT apply to this type of marketplace.
  • Example: Craigslist.

Is the marketplace provider required to remit tax on all sales made through the marketplace?

Yes, once they meet any of the thresholds.

How does SB 2 impact SD residents/businesses selling through a marketplace?

The marketplace will remit sales tax if any of the thresholds are met. If a marketplace is remitting the sales tax, the SD business will not be responsible for sales tax remittance on sales through that marketplace.

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


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