South Dakota imposes various requirements on purchasers doing business in South Dakota. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.
Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.
Resale exemptions. In South Dakota resales are excluded from the definition of retail sale. The burden of proving that a sale is for resale is on the seller who must obtain a certificate of resale from you the purchaser. If you have provided the seller with a resale certificate you are responsible for informing the seller when items covered by the certificate are not being purchased for resale and therefore are subject to tax.
Resale exemption certificate. In South Dakota the only acceptable forms for resale certificates are Form ST-110 (Certificate of Resale), a substitute form that the Department of Revenue has previously approved, or the Multistate Tax Commission's uniform sales and use tax certificate. The resale certificate must include the following information:
- your signature as the purchaser
- your name and address
- your sales tax license number
- a description of the types of tangible personal property and services being purchased for resale
Blanket resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or service for processing or resale. A blanket exemption certificate may be accepted for a stated period of time, but not more than one year.
Purchases from out-of-state vendors. In South Dakota property brought into the state on which a sales or use tax has been paid in another state equal to or in excess of the South Dakota tax is not subject to tax in South Dakota.