Any business that sells goods or taxable services within the state of South Dakota to customers located in South Dakota is required to collect sales tax from that buyer.
Do you need to get a Sales Tax certificate in South Dakota State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in South Dakota State
- Your business sells tangible goods and products to an end user
What constitutes taxable services in South Dakota State?
The majority of service businesses are taxable in South Dakota. The exceptions would be if your business offers medical services
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of South Dakota?
As a wholesale company conducting business in the state of South Dakota, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in South Dakota that are taxable than you would charge sales tax on shipping and handling charges
Is there sales tax on drop shipments in the state of South Dakota?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in South Dakota are required to have sales tax added
Are there any exemptions to taxable items sold?
Sales tax exemptions would be medical devices, pollution control equipment, raw materials used in manufacturing, and machinery
Register for a South Dakota sales/use tax number
South Dakota state, county, city, & municipal tax rate table