South Dakota: Sales Tax Handbook
How to file your sales taxes in South Dakota
Once your business has a South Dakota sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the South Dakota government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In South Dakota
If the seller has an in state location in the state of South Dakota, they are legally required to collect sales tax at the rate of the destination of the buyer, as South Dakota is a destination based sales tax state.
If the seller's location is out of state, then sales tax is not required to be collected, unless the seller has sales tax nexus in South Dakota.
Sales Tax Collection Discounts In South Dakota
South Dakota allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the South Dakota sales tax regulations
The collection discount is 1.5% of tax due, although it must be noted that this is applicable only to electronic filers.
Your South Dakota Sales Tax Filing Requirements
To file sales tax in South Dakota, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of South Dakota provides all taxpayers with several choices for filing their taxes. One option is to file online by using the South Dakota Department of Revenue online service.
Tax payers should be aware of a late filing penalty of 10% of the tax due if the filing is submitted later than a month following the due date, with a minimum of ten dollars due, regardless of what amount of tax is due. The late payment penalty is 1.25% of the tax due if it is not paid for each month or fraction of a month that the payment is late (a minimum of five dollars for the first month.
The state of South Dakota requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your South Dakota Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period, EFT remitters file on the 23rd of the month following reporting period. For a list of this year's actual due dates, see our calendar of South Dakota sales tax filing due dates.
Where To File Your South Dakota Sales Tax Return:
Filing Your South Dakota Sales Tax Returns Online
South Dakota supports electronic filing of sales tax returns, which is often much faster than filing via mail.
South Dakota allows businesses to make sales tax payments electronically via the internet.
You can process your required sales tax filings and payments online using the official South Dakota EPath website, which can be found here . You should have received credentials to access your South Dakota EPath account when you applied for your South Dakota sales tax license.
Filing Your South Dakota Sales Tax Returns Offline
While it is highly recommended that you file online using the South Dakota EPath website, it is possible to file your required sales tax reportings offline using South Dakota Form E1934V8, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:South Dakota Sales Tax Filing Address: Department of Revenue
PO Box 5055
Sioux Falls, SD 57117-5055
Please note that if you file your South Dakota sales taxes by mail, it may take significantly longer to process your returns and payments.
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