South Dakota Remote Seller (Wayfair) Sales Tax Bulletin

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1 | August 2025 | South Dakota Department of Revenue | Remote Seller Bulletin

Remote Seller Bulletin The purpose of this bulletin is to provide general guidelines on how tax applies to the sale of products and services by remote sellers. It is not intended to answer all questions that may arise. The information contained in this fact sheet is current as of the date of publication. August 2025 https://dor.sd.gov/ 1-800-829-9188 Remote Seller

# South Dakota Business

Businesses are required to have a South Dakota sales tax license and must collect and remit sales tax on taxable transactions if: • the business has a physical presence in South Dakota. • the business does not have a physical presence but has more than $100,000 in gross sales into South Dakota in the previous or current calendar year. Businesses without a physical presence in South Dakota are considered to be remote sellers. Remote sellers are required to register by the first day of the month that starts at least thirty days after the threshold is met.

Gross sales or transactions include selling, renting, or leasing products or services (including products delivered electronically) into South Dakota (SDCL ch. 10-64). The Department understands it is important to partner with the business community to ensure a successful transition. We understand there are preparatory steps remote sellers need to take before collections begin. If there are concerns about complying with this timeframe, please contact the Department of Revenue directly for further assistance. A remote seller must obtain a sales tax license from the South Dakota Department of Revenue. Apply for a sales tax license online at www.sd.gov/taxapp or through the Streamlined system at www.streamlinedsalestax.org. As a retailer located in South Dakota, your tax collection obligations for South Dakota do not change. If you are a South Dakota business and a remote seller, you may need to obtain a license in other states. • Each state's remote seller taxation laws are different. If you sell products or services delivered to other states, you may be required to pay sales tax in that state. Click here to view the state-by-state directory. • Visit the Streamlined Sales Tax website to view collection requirements from the 24 member states.  Click here to register for tax collection through the Streamlined Sales Tax Project. If you are unable to contact other states, contact the South Dakota Department of Revenue for assistance. Example: An out-of-state seller's gross revenue for sales into South Dakota exceeds $100,000 on May 28. The seller would not be required to register and begin collecting South Dakota sales tax until July 1.

2 | August 2025 | South Dakota Department of Revenue | Remote Seller Bulletin Contact Us If you have any questions, please contact the South Dakota Department of Revenue.

Call toll-free: 1-800-829-9188 Business Tax Division Email: bustax@state.sd.us Website: https://dor.sd.gov/ Mailing address and office location: South Dakota Department of Revenue 445 East Capitol Ave Pierre, SD 57501 Remote Seller FAQ's How does a remote seller obtain a sales tax license? • The Department of Revenue offers a convenient, online application for a variety of taxes, including sales tax. To get started, click here. • You can also register through the Streamlined Sales Tax Project. To get started, click here.

How does a remote seller file and pay taxes with South Dakota? • Once licensed, a remote seller can file, pay, and amend tax returns by using South Dakota's online tax filing system EPath.

Will South Dakota go back and try to recover taxes that weren 't collected and paid on purchases made prior to the ruling? • No, the state cannot go back and retroactively collect sales tax from a remote seller. The state is legally precluded from enforcing retroactive tax collection on remote sellers for any sale made prior to November 1, 2018 (SDCL 10-64-6).

Once a business reaches the threshold of gross sales of more than $100,000 into South Dakota, will the state tax all of that company's in-state transactions from the previous year? • If a business meets the $100,000 gross sales threshold in the previous calendar year, the business is required to become licensed and remit South Dakota sales tax for the following year. • If a business meets the $100,000 gross sales threshold during the current calendar year, the business is required to become licensed and remit South Dakota sales tax from that point forward. • Remote sellers are required to register by the first day of the month that starts at least thirty days after the threshold is met.

Does South Dakota require a remote seller to file separate returns for state and municipal sales taxes? • No, South Dakota state and municipal taxes are reported and paid on the same sales tax return.

What is the Streamlined Sales Tax Project? • The Streamlined Sales Tax Project provides businesses of all sizes the ability to simultaneously obtain a license, file and pay sales tax with the program's 24-member states. • To learn more about the Streamlined Sales Tax Project, click here.