South Dakota Multistate Tax Commission-Sales-Tax-Amnesty

South Dakota MTC-Sales-Tax-Amnesty
(August 17th – October 17th)

South Dakota Multistate Taxation Commission Amnesty Program

Summary of the Amazon sellers required to collect and remit in FBA states and the MTC and the program and non FBA states

Once you received your application from the MTC that is signed by the state you have a 30-day window to apply for a sales tax permit in each state.

What is Nexus and Why is it Important in South Dakota?

If you have nexus or a presence in the state you will have to register to collect and remit sales tax. There is a different standard for sales tax nexus vs income tax nexus. Some states will separate the two, and some states will lump the two together. This comes up when you register for a sales tax permit and you may have to file a corporate tax return and pay state corporate income taxes.

South Dakota considers the following activities to create nexus:

Here is a list of activities that create nexus in South Dakota:

South Dakota considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • “Maintaining a place of business in the state”, which includes an office, distribution house, warehouse, etc.
  • A warehouse or inventory stored in the state
  • Hiring South Dakota employee, or has agents/sales people/contractors working in South Dakota
  • Stock/Inventory in third-party warehouse

Go here to see full details on what constitutes sales tax nexus in South Dakota.

Where to Apply for a Sales Tax Permit in South Dakota

You may file online for a South Dakota Sales Permit at the Tax Application Website.

South Dakota Department of Revenue
South Dakota Tax Registration
715 S Maple
Watertown, SD 57201

Mailing Address

South Dakota Department of Revenue
PO Box 98903
Lincoln, NE 68509-8903

What is a Required to Register for a Sales Tax Permit in South Dakota

  • Personal identification info (SSN, address, etc.) If you do not have a SSN, you must apply with a paper application.
  • Business identification info (EIN, address, etc.).  Business entity type
  • Location Information
  • Date started doing business in South Dakota

South Dakota State Fee to Register for a Sales Tax Permit

Applying for a South Dakota sales permit is free, although other fees may apply.

South Dakota State Sales Tax Rates

The South Dakota state tax rate is 4.5%.  Local taxes rates vary, but can go as high as 4.5% .

If you do in fact have nexus in South Dakota, it is especially important to file and pay for your sales tax on-time; South Dakota charges a penalty of 25% of total tax due if not filed within 10 days after written demand.

In addition, South Dakota is one of the so-called “zero return” states that requires any seller with a sales tax permit to file a sales tax return, even if you don’t have any sales tax to report or pay.

Registering for a Sales Tax Permit in South Dakota

Sellers with sales tax nexus in South Dakota must first apply for a sales tax permit. You must legally have a license to collect sales tax. Collecting sales tax without a license is illegal.

Here are the critical factors that come into applying for a sales tax permit in South Dakota:

  • Knowing the process to file online vs mailing in a PDF (if available, especially for sellers without a SSN).
  • Using the correct sales start date
  • Knowing the accurate past sales tax amount
  • Filing in the correct taxation type of your business
  • Applying for the right type of permit in the state
  • Setting up a tax account to remit sales tax
  • Understanding your remitting requirements
  • Plus many more issues may come up

Let Sales Tax System apply for your sales tax permit in South Dakota so you can focus on operating your Amazon FBA business.

Learn more and register for our Sales Tax System Membership. 

Learn more how Sales Tax System Members will save $100 per state with our MTC VDA service. $100 Savings Expires September 15th. 

Learn more and register for $95 per State Permit Service (does not include membership to Sales Tax System).

 

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