Standard rate
The standard rate VAT in South Dakota is 4.5%.
Who is obliged to register sales tax
Any business that has products or services physically present in South Dakota or has met the threshold for sales should acquire a sales tax license.
Threshold
- $100,000;
or
- 200 separate transactions.
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Online Marketplaces
The marketplace will pay sales tax if the threshold is met. If the market pays the sales tax, the seller will no longer have to pay the tax for sales through that marketplace.
Registration procedure for South Dakota sales tax
With the “Tax License Application” online service, you can apply for a tax license.
When is the due date for sales tax payments and filing?
For example, for a December 31st tax return submission date, the deadline is January 20th.
Please make sure all payments are sent by the 25th day of the following month.
Paper returns must be filed by the 20th of the month following the reporting period and paid.
Penalty and interest
A penalty of 10% of the tax liability is assessed if a return is not received within 30 days following the month the return is due. The minimum penalty is $10 and is assessed even if the tax is zero.
Additional fees are charged every month for any taxes owed. The first month’s fees cannot be less than $5.