If you’re a business owner in South Dakota, you may be wondering how to get a resale certificate. A resale certificate allows businesses to sell goods and services without paying sales tax, and the liability for sales tax falls on the reseller rather than the supplier. There are two ways to share a reseller’s certificate: by submitting an existing certificate to the supplier or by creating a new certificate on a third-party platform such as Avalara or Tax exempt.
Sales tax rate – 4.500%
Information required to register for a sales tax permit in the state of South Dakota
1) Legal business name
2) Type of business entity: Sole Proprietorship, Partnership, Corporation, Limited Liability Company (LLC)
3) Description of what products or services are being sold
4) Physical address and mailing address of the business
5) North American Industry Classification System (NAICS) code
6) Federal Employer Identification Number (FEIN) with the IRS
7) Name, address, SSN, driver’s license number, phone number, and email of owners/officers/members
A South Dakota resale tax exemption certificate allows businesses to buy or rent property or products without having to pay tax. The certificate is valid for one year and must be renewed annually by businesses to maintain the exemption.
Certain purchases and rentals can be made without the need to pay sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
South Dakota Vendors need to be aware of a few things when applying for a resale tax exemption certificate. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. This means that you can use the certificate to purchase items for personal use and later sell them as part of your business.
A selling dealer can accept an Annual Resale Certificate that has only a single owner’s name on it and not a d/b/a; this type of certificate would be considered valid for resales in any type of transaction (i.e., store, e-commerce). The selling dealer can also continue to sell tax exempt products to this customer (for example, on charge account or cash-on delivery basis).
As long as you have all the proper information filled out, the initial copy of the certificate is sufficient- there’s no need to send in multiple copies. These are the things to remember if you want to obtain a certificate exempting resale tax.
This certificate is also known as a tax-exempt certificate and it must be obtained by the business, that intends to buy products with an intention to re-sell. example – If you are a business called A, based in the state of Florida, then in order to re-sell goods within the state of Florida then you must obtain a reseller’s certificate. Normally reseller’s certificate is valid within the state however there is no clear-cut answer, as a few friendly states do accept certificates from other states, to do business in their own state.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.
You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.
The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.
South Dakota (; Sioux: Dakȟóta itókagacode: lak is deprecated , pronounced [daˈkˣota iˈtokaga]) is a U.S. state in the North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Lakota and Dakota Sioux Native American tribes, who comprise a large portion of the population with nine reservations currently in the state and have historically dominated the territory. South Dakota is the seventeenth largest by area, but the 5th least populous, and the 5th least densely populated of the 50 United States. As the southern part of the former Dakota Territory, South Dakota became a state on November 2, 1889, simultaneously with North Dakota. They are the 39th and 40th states admitted to the union; President Benjamin Harrison shuffled the statehood papers before signing them so that no one could tell which became a state first. Pierre is the state capital, and Sioux Falls, with a population of about 187,200, is South Dakota’s largest city.
South Dakota is bordered by the states of North Dakota (to the north), Minnesota (to the east), Iowa (to the southeast), Nebraska (to the south), Wyoming (to the west), and Montana (to the northwest). The state is bisected by the Missouri River, dividing South Dakota into two geographically and socially distinct halves, known to residents as “East River” and “West River”.
Eastern South Dakota is home to most of the state’s population, and the area’s fertile soil is used to grow a variety of crops. West of the Missouri River, ranching is the predominant agricultural activity, and the economy is more dependent on tourism and defense spending. Most of the Native American reservations are in West River. The Black Hills, a group of low pine-covered mountains sacred to the Sioux, is in the southwest part of the state. Mount Rushmore, a major tourist destination, is there. South Dakota has a temperate continental climate, with four distinct seasons and precipitation ranging from moderate in the east to semi-arid in the west. The state’s ecology features species typical of a North American grassland biome.Source