New Marketplace Provider Obligations in South Dakota

March 1, 2019 Oliver Mavor-Parker

Effective March 1, 2019, South Dakota marketplace providers are required to collect and remit sales tax if certain thresholds are met. A marketplace provider will be required to collect sales tax on all sales it facilitates on behalf of marketplace sellers if the marketplace provider:

  • is a remote seller with more than $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year; OR
  • facilitates the sales of at least one marketplace seller with more than $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year; OR
  • facilitates the sales of two or more marketplace sellers that, when sales are combined, have more than $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year.

Gross sales or transactions include selling, renting, or leasing products or services, including products delivered electronically. If a marketplace provider meets any of these thresholds, they must also obtain a sales tax license for South Dakota.

About the Author

Oliver Mavor-Parker is a Junior Regulatory Counsel at Sovos Compliance. Oliver has a B.A. from the University of North Carolina and a J.D. from Boston University School of Law. Oliver is a member of the Massachusetts Bar.

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