Step-by-step process for filing sales tax in South Dakota
Let’s get right into the steps for filing your sales tax returns in South Dakota. We’ll start with creating an account with the South Dakota DOR. However, feel free to skip the step if you already have an account.
Step 1: Create an online account
The first step in filing sales tax returns in South Dakota is registering for a sales tax account through the Department of Revenue's online portal, the Taxpayer Access Point (TAP).
Businesses must provide necessary details during the registration process and obtain a sales tax license.
Creating an account involves clicking on the "Create Account" button and sharing all the required information to receive a username and password.
Step 2: Login into your account
After setting up the account, businesses can log in to TAP using their user credentials.
This grants access to the sales tax account dashboard, where businesses can manage their sales tax filings and payments.
Step 3: Start your tax return
From the accounts tab on the dashboard, businesses can locate their Sales Tax account in the list.
The return due for the current month will be listed above the account options. To begin filing the return, click on the "File Return" button.
Step 4: Enter tax details
If the business had no sales for the period and needs to file a zero return, they can check the box under Return Attributes. For businesses with taxable sales, they must fill out the Sales and Use Tax Worksheet.
On the worksheet, businesses select the type of deduction from the drop-down menu, add a description if applicable, and enter the deduction amount. After entering the information, click "OK" and then "Next."
The next screen requires businesses to select the counties where they had taxable sales from the drop-down list.
The county in which the business is located will be automatically populated in the table. Businesses must fill in the taxable sales in each column that becomes available to edit, based on the taxes imposed by each county or municipality.
If there were no taxable sales in a particular county, businesses can check the "Zero Taxable Sales" column for that county. After completing the table, click "Next."
On the Sales and Use Tax Return summary page, businesses should review the information for accuracy. If everything is correct, click "Submit."
A prompt will appear, asking for the password, which acts as a signature. Enter the password and click "OK."
The confirmation screen will display a confirmation number, which businesses should print or write down for their records.
They can also print a summary page of the return.
Step 5: Submit payment
If any tax is due, businesses can click the "Pay" button on the confirmation screen. They must select the payment method and follow the instructions to complete the payment.
It is possible to make a payment without filing a return by selecting "Payment Only" from the main menu screen, choosing the appropriate license, and entering banking information. Businesses should save and/or print the payment confirmation for their records.
Step 6: Finalize filing
After filing the sales tax return, businesses may print the return by clicking on "View Account Activity" under "View History" on the main menu. From the ledger screen, they can select previously processed items, choose the desired return, and view and/or print it.
Local sales tax
In addition to the South Dakota state sales tax rate of 4.5%, municipalities in South Dakota can impose additional sales and use taxes. As a result, the total sales tax rate can be higher in certain areas. Some major cities in South Dakota and their current sales tax rates include:
Filing Sales Tax in South Dakota FAQs
What records should I keep for South Dakota sales tax purposes?
Businesses should maintain detailed records of all taxable sales and purchases, including invoices, receipts, and other relevant documents, for at least three years. These records must be available for inspection by the Department of Revenue if requested. Note that, unlike some other states, SaaS products are taxable in South Dakota.
How often do I need to file sales tax returns in South Dakota?
The frequency of sales tax filings in South Dakota depends on the volume of sales. Most businesses file monthly, but they could be required to file quarterly or annually if their tax liability is lower.
What are the penalties for late sales tax payments in South Dakota?
Late payments may incur a penalty of 10% of the amount due, or $10, whichever is greater. Interest is also charged on the unpaid tax from the due date until the date of payment.
Can I amend a sales tax return if I made an error in South Dakota?
Yes, if a business discovers an error on a previously filed sales tax return, they can file an amended return through TAP. Businesses should correct errors as soon as they are discovered to minimize any potential penalties and interest.
Who can I contact if I need help with my sales tax filing in South Dakota?
Businesses with questions or needing assistance with sales tax filing can contact the South Dakota Department of Revenue. Support is available through their website, by phone at (605) 773-3311, or by email. The Department also provides resources and guidance for taxpayers on their site.
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