How to Get a Resale Certificate in South Dakota

If you're buying inventory to resell, a South Dakota resale certificate lets you purchase goods without paying sales tax upfront. When you sell those items, you collect and remit the tax to the state. It's a critical document for any retailer, wholesaler, or reseller doing business in South Dakota.

The resale certificate is issued as part of your sales tax permit application through the South Dakota Department of Revenue. This guide walks you through exactly what you need and how to get it done.

What You'll Need to Apply for a South Dakota Resale Certificate

Before you start the application, gather these materials:

• Business identification. Your business name and structure (sole proprietorship, LLC, corporation, or partnership).
• Federal Employer Identification Number (EIN). Apply through the IRS at irs.gov if you don't have one. Sole proprietors can use their Social Security number.
• Business location address. Your physical street address in South Dakota (or out-of-state address if you're an out-of-state seller with sales into South Dakota).
• Mailing address. Where the Department of Revenue should send correspondence.
• Product or service description. Brief description of what you sell.
• Estimated sales volume. A rough projection of annual sales; you can estimate conservatively.
• Owner information. Name, title, and contact details for the person applying.

No application fee is charged for a South Dakota sales tax license. The permit is free; you only owe sales tax on what you collect from customers.

Step-by-Step Instructions for Getting a South Dakota Sales Tax Permit and Resale Certificate

Step 1: Determine If You Need a Permit

South Dakota requires a sales tax permit if any of these apply to you:

• You have a physical location in the state (storefront, warehouse, office, or even a booth at a farmer's market).
• You make more than $100,000 in sales into South Dakota in a calendar year (even if you operate from outside the state).
• You sell tangible goods intended for use or consumption (this is the standard trigger for needing resale privileges).

If you only sell services and have no South Dakota presence, you likely don't need a permit. However, confirm with the Department of Revenue at dor.sd.gov if you're unsure.

Step 2: Create an Account on the South Dakota Tax License Application Portal

Navigate to apps.sd.gov/rv23cedar, the official South Dakota Tax License Application system. This portal handles sales tax permits, contractor's excise licenses, fuel permits, and other licenses.

Click "Create an Account" or "New Application." You'll need to provide an email address and create a password. The system will send you a confirmation email; click the link to activate your account. Save your login credentials; you'll use this portal to file annual reports and make changes to your license.

Step 3: Begin the Sales Tax License Application

Log in to your account and select "Sales Tax License" from the license type menu. The application is divided into sections that you complete online:

• Business Information. Enter your legal business name, structure (LLC, C-corp, S-corp, sole proprietorship), and EIN. If you operate under a trade name, include that as well.
• Location Details. Provide the street address where you conduct business in South Dakota. If you have multiple locations, you can add them; each may receive its own permit number, though you report on one return.
• Mailing Address. Where tax-related mail should be sent (can be the same as business address or a PO box).
• Owner and Authorized Representative. The application asks for the owner's name, title, phone, and email. If someone else is filing on behalf of the owner, mark that person as an authorized representative.
• Business Description. Briefly describe your business and the products or services you sell. Example: "Retail clothing and accessories" or "Wholesale distributor of office supplies."

Step 4: Declare Resale Intent and Taxable Activity

On the application form, you'll see a section for taxable activities. Make sure to indicate that you are purchasing inventory for resale. This is the critical box that triggers the issuance of resale certificate privileges on your permit. The form may ask:

• Do you purchase items for resale? Select "Yes."
• Will you be selling tangible goods? Select "Yes."
• Type of sales (retail, wholesale, mail order, online, etc.). Select all that apply.

Some sellers also conduct taxable services (like installation or repair). If so, you'll owe sales tax on those as well. List all activities honestly; the Department of Revenue may verify your filings later.

Step 5: Estimate Annual Sales Volume

The application asks for estimated annual gross sales into South Dakota. This figure helps the Department of Revenue track collections and compliance. You don't need an exact number; a reasonable estimate is fine. Examples:

• $50,000 to $100,000
• $100,000 to $250,000
• $250,000 to $500,000
• Over $500,000

If you're brand new and have no sales history, estimate what you expect in year one. You can update this later if actual sales differ significantly.

Step 6: Review and Submit

After completing all sections, the portal displays a summary. Review every field for accuracy: business name, address, EIN, and resale intent. Errors can cause delays or require corrections later. Once satisfied, click "Submit Application."

The application is submitted electronically and instantly processed. The Department of Revenue issues your sales tax license and resale certificate immediately in most cases. You'll receive a confirmation email with your license number.

Step 7: Download and Print Your Resale Certificate

Log back into the portal and download your sales tax license documentation. The permit number and resale authority will be displayed. Some sellers print this as a physical certificate; others keep it digital. Either format is valid for showing suppliers that you are authorized to purchase goods without paying sales tax.

You should receive your permit within one business day. If processing takes longer, you can call the South Dakota Department of Revenue at the number listed on their website to check status.

Tips to Avoid Common Mistakes

Don't confuse "resale certificate" with the permit itself. The permit is your legal authorization. The resale certificate (also called a seller's permit or sales tax permit) is the same document. You present your permit number to suppliers when making wholesale purchases. No separate certificate arrives in the mail.

Don't forget to provide your actual location. The portal requires a real South Dakota street address. A PO box alone is not sufficient. If you operate from home, use your home address. If you sell at a market stall, use the market's address or your home address if that's where inventory is stored.

Don't claim resale status for personal use items. You can only use your resale certificate to buy inventory that you will sell to customers. If a supplier suspects you're buying goods for personal consumption and claiming resale to avoid tax, they may refuse the transaction or report you. The Department of Revenue can also audit and assess back taxes plus penalties.

Don't skip annual reports. Once licensed, you must file a sales tax return at least annually, even if you had zero sales. Missing a filing deadline can lead to penalties and license suspension. The Department of Revenue sends reminders by mail and email.

Don't assume online sellers don't need a permit. If you operate an e-commerce store and have more than $100,000 in sales to South Dakota customers, you need a permit and must remit sales tax on those sales (or inform customers they owe use tax). The law applies to online retailers the same as brick-and-mortar stores.

Don't apply online if you need expedited processing. Online applications are processed quickly, but if you need your license the same day or within hours, contact the South Dakota Department of Revenue directly. They may be able to issue a temporary permit over the phone pending your formal application.

What to Expect After You Receive Your South Dakota Resale Certificate

Once your sales tax permit is issued, you are legally authorized to purchase goods for resale without paying sales tax. Here's what comes next:

Provide your permit number to suppliers. When you order inventory from wholesalers, distributors, or manufacturers, provide your South Dakota sales tax permit number. The supplier will not charge you sales tax on those purchases. Many suppliers require you to complete a resale certificate form or affidavit confirming you are reselling the goods, not using them for personal consumption.

Collect sales tax from your customers. When you sell goods to end consumers, you must collect South Dakota sales tax. The state rate is 4.2%, though some local jurisdictions add a local tax, bringing the total to 5.2% to 7.5% depending on location. You are responsible for knowing the correct rate for each customer's location.

File regular sales tax returns. The Department of Revenue requires sales tax returns at least once per year. High-volume sellers may file monthly or quarterly. You report total sales, taxable sales, tax collected, and any applicable deductions or credits. Returns are filed through the same online portal where you applied.

Remit taxes to the state. Payment is due by the deadline shown on your return notice. Payments are made online through the portal or by mail. Late payments incur interest and penalties. Setting aside a portion of each sale for taxes helps you avoid cash flow problems at payment time.

Renew your permit as required. While South Dakota sales tax licenses do not expire, you must remain in compliance with filing requirements. If you move locations, change your business structure, or close your business, notify the Department of Revenue promptly.

Frequently Asked Questions

How quickly do I get my resale certificate? Most applications are processed immediately upon submission, and you can download your permit number from the portal within minutes. You can begin making wholesale purchases right away.

Do I need a separate resale certificate for each product line? No. One sales tax permit covers all products and services your business offers. You don't file separate applications for different categories of goods.

Can an out-of-state business get a South Dakota resale certificate? Yes, if you have over $100,000 in sales into South Dakota, you must obtain a permit. You do not need a physical location in the state.

What if I also perform services? Do I need to charge sales tax? Some services are taxable, others are not. For example, installation might be taxable while consulting is not. Review the Department of Revenue's service taxability guide or contact them directly to confirm your specific service.

Can I resell items I purchased with sales tax already paid? Yes, but you cannot recover the tax you already paid. Moving forward, use your resale certificate to avoid paying tax on inventory purchases. Keep records of all resales for your annual return.

Key Takeaways

A South Dakota sales tax permit and resale certificate are essential for any retailer or reseller in the state. The application process is straightforward, free, and completed online in minutes. Gather your business information and EIN, visit the South Dakota Tax License Application portal at apps.sd.gov/rv23cedar, mark "yes" to resale purchases, and submit. You'll have your permit number immediately.

Once licensed, present your permit number to suppliers to purchase inventory tax-free, collect sales tax from customers, file annual returns, and stay compliant with state deadlines. South Dakota imposes no corporate income tax or franchise tax, which means your only recurring tax obligation is sales tax remittance.

If you have questions about whether you need a permit, what's taxable, or filing deadlines, contact the South Dakota Department of Revenue at dor.sd.gov. For complex situations, consult a South Dakota CPA or business attorney who can advise you on your specific setup. This content is informational and not legal or tax advice.