What is a South Dakota resale tax exemption certificate?

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.

How to get a South Dakota resale sales tax exemption certificate??

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.