South Dakota’s marketplace provider sales tax bill will go into effect on March 1, 2019.
If you’re a remote seller without a physical presence in South Dakota, then the sales tax rule went into effect on November 1, 2018.
From the South Dakota Department of Revenue’s website, remote sellers who exceed these thresholds are required to register, collect, and remit sales tax:
- Your business’s gross revenue from sales into South Dakota exceeded $100,000; or
- Your business made sales for delivery into South Dakota in 200 or more separate transactions
If you’re selling through Amazon FBA, then Amazon will likely collect and remit on your behalf. Speak to a tax professional if you believe you exceed the exemption for South Dakota or any other state.
While most states have $200,000 or 200 transactions, some states such as South Dakota have lower limits of $100,000 or 200 or more separate transactions. Some states may even have $100,000 or 100 transactions. See our link below for a collection of the small seller exemptions listed by state.
Most states have some kind of remote seller sales tax legislation based on an economic, rather than physical, nexus. That means nexus is defined through economic activity (gross sales), rather than physical presence.
South Dakota joins a growing list of states that are requiring marketplace facilitators to collect sales tax on sales. Many more states are considering legislation or have pending legislation regarding sales tax, so expect more changes in 2019.
Using SellerZen to automatically import orders from Amazon into QuickBooks Online? Simply add South Dakota as a sales tax agency in QuickBooks Online. We’ll create the proper documents so you can track sales tax collected for those tax agencies.
Read our article on 50-state list of remote seller and marketplace provider tax to get a compiled list of the states and their exemptions. You’ll also find direct links to the tax agency’s website so you can learn more.