South Dakota: Remote Sellers and Marketplace Providers
In a special legislative session on September 12, 2018, Senate Bills 1 & 2 were passed and signed by the Governor of South Dakota.
Remote Sellers: SB 1
On November 1, 2018, remote sellers, even if they do not have a physical presence in South Dakota but meet one or both of the following criteria in the previous or current calendar year, will be required to obtain a South Dakota sales tax license and pay applicable sales tax. Excluded are the defendants in the South Dakota v. Wayfair case.
- Businesses with gross revenue from sales into South Dakota exceeds $100,000; or
- Businesses that had sales from deliveries into South Dakota of 200 or more separate transactions.
Marketplace Providers: SB 2
On March 1, 2019, marketplace providers that facilitate sales that meet one or both of the following criteria in the previous or current calendar year, will be required to obtain a South Dakota sales tax license and pay applicable sales tax.
- Gross revenue from facilitated sales into South Dakota exceeds $100,000; or
- 200 or more transactions from facilitated sales are made into South Dakota.
Market Providers:
Fulfillment Service: Connecting sellers to buyers and handles all transactions such as warehousing, order, payment, and shipping.
Facilitator: Connecting sellers to buyers and processing orders and payments. This type of marketplace seller is usually responsible for shipping the product.
Contact us today to discuss how we can help you in determining if the products or services you provide are taxable or exempt in South Dakota, and the correct sales tax rates to apply. We also can help in determining if a customer claiming exemption from sales tax is truly an exempt entity.
