South Dakota Sales Tax Information
- Sales Tax Rate
- Local Taxes
- Department of Revenue
- Tax Line
The sale of goods or services via the Internet is subject to state and applicable municipal sales tax when delivered (physically or electronically) to locations in South Dakota.
Tax rules on shipping and/or handling
Delivery charges (including shipping and handling) are subject to state and municipal sales tax when taxable merchandise is delivered to a customer in South Dakota.
- Paper deadline is different than electronic deadline
- Paper filing and paying is always due the 20th of the following month.
- Filing every other month, semi-annually, or on a seasonal basis - returns are due the last day of the month following the reporting period.
- Filing electronically, using SD Quest - returns must be filed no later than the 23rd day of the month. Payments must be electronically remitted on the second to last working day of the month.
Penalties & Interest
Returns filed late (a return is not received within the next month following the due date) are assessed a late filing penalty of 10% (.10) of the tax liability (minimum $10.00, even if no tax is due).
Payments made after the due date of the return are assessed interest of 1.25% (.0125) of the tax liability each month or part thereof for a return filed or any tax unpaid after the due date (a minimum of $5.00 is due the first month).
In addition to penalty and interest, late returns and payments may result in the license being revoked. Collection activities such as tax liens and distress warrants may be used on delinquent accounts.
How to File & Pay
Record Keeping Requirements
The state says on page 12 (PDF) that you are required to maintain records that “are adequate for auditors to use in determining the correct amount of a business’ tax liability.”
Business Registration Requirements
If your business has nexus with the state of South Dakota then it’s required to apply for sales tax license. That can be done online at the South Dakota Department of Revenue website.