What is Sales Tax South Dakota?
Sales tax applies to the gross receipts of all retail sales, including the sale, lease or rental of tangible personal property or any product transferred electronically, and the sale of services.
What is Use Tax South Dakota?
Use tax is a tax on all products and services that are used, stored, or consumed in South Dalota when South Dakota's sales tax has not been paid. Sales tax and Use Tax are the same. It is also payable on the out of state purchases, if sales tax was not paid to the supplier.
Who must apply for the South Dakota Sales Tax Number?
Every person, association, fiduciary, partnership, corporation, or their entity making taxable sales of tangible personal property or services must register for a South Dakota Sales Tax Permit.
Failure to be licensed may subject the seller to a fine. Entities which make taxable purchases, but did not pay sales tax upon purchase should report use tax directly to the South Dakota Department of Revenue.
How to charge Sales Tax?
- Sales tax should be charged on the gross value of the merchandise and taxable services.
- Shipping price should be included to calculate taxable sales.
- The sales tax must be charged as per the tax chart listed on the South Dakota Department of Revenue.
- Sales tax is imposed based on the customer address. If merchandise is delivered and service provided outside of South Dakota is not subject to sales tax, but may be subject to that state's tax.
- Sales tax will be charged to the Non Residents of the South Dakota, if the possession was taken in the state.
- Delivery charges should be included in taxable sales including shipping, postage, handling, crating, packing, and fuel surcharge.
What is the South Dakota Exemption Certificate?
The seller should not charge sales tax, if the exemption certificate was provided by the seller to re-sell goods or exempt purpose (such as Indian tribes, United States Government Agencies, State of South Dakota and you can check a complete list on the South Dakota Department of Revenue website).
How to apply for a South Dakota Sales Tax Registration?
You can file online South Dakota Sales Tax by filling out "South Dakota Tax Application"with the following information. State usually takes 7-10 working days to process your application.
- Name of the business is legally registered as a corporation, LLC, Sole Proprietor or your legal name.
- Provide business description in detail.
- Provide business address (PO Box is not acceptable).
- All owners' information, including name, address, social security number (not applicable for non US resident) and date of birth.
- Ownership percentage if more than one owner.
- Employer identification number if incorporated as a Corporation or an LLC
- Estimated monthly gross sales.
- The state may reject your application, if you owe sales tax to any of your prior business.
- You can request to the state for a duplicate copy, if you have lost your sales tax certificate.
- You will surrender the sales tax certificate and notify the state if planning to close the business.
- Purpose to Register Sales Tax Permit in South Dakota.
Obligation of South Dakota Sales Tax License Holder
- Keep the information current on the sales tax certificate
- File sales tax returns on time along with the due amount
- Cancel sales tax license, if closing out business
- South Dakota Sales Tax is not transferable to the new owner, if sold business.
- Keep proper bookkeeping and records to present to the department, if your business ever came under audit and review.
