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South Dakota Resale Certificate and Seller's Permit (2026)

Last updated: 2026-10-12 · Checked against the South Dakota Department of Revenue's own pages, forms and rules on 2026-10-12

To buy inventory tax-free in South Dakota, give your supplier a completed Streamlined Certificate of Exemption (Form 2040); you need a South Dakota seller's registration number to fill it in. The multistate Streamlined (SST) certificate is accepted and the MTC uniform certificate is accepted. Buyers registered only in another state can generally use their home-state number. Registering for the Sales Tax License: free.

Resale form

Form 2040

buyer fills it in

Permit fee

Free

Sales Tax License

SST form

Accepted

SSTGB Form F0003

MTC form

Accepted

uniform certificate

South Dakota resale certificate and permit rules

South Dakota: seller's permit & resale certificate

Sales tax · Agency: South Dakota Department of Revenue

Permit

Sales Tax License

Registration fee

Free

SST form

Accepted

MTC form

Accepted

Resale certificate: Streamlined Certificate of Exemption (Form 2040)Get the official form →
How long it's valid: Single purchase or blanket. A blanket certificate (recurring purchases at least once in 12 consecutive months) continues in force until canceled by the purchaser; certificates do not expire unless the information changes, but DOR recommends updating every three to four years.
Seller's permit: Sales Tax License — Free. 'There is no fee for a sales or contractor's excise tax license.' A license card is issued once approved. A license is required for each business location (multi-location businesses may qualify for a statewide license with consolidated filing). Apply online or through the Streamlined Sales Tax Registration System.Register with South Dakota Department of Revenue →
Buyer registered in another state?: Yes — the purchaser lists the tax permit number from its own state; if the purchaser's state does not issue sales tax permits (e.g., Montana), it lists its FEIN or driver's license number on the completed certificate (Exemption Certificate Tax Fact example). Drop Shipments Tax Fact: 'The retailer may provide their tax permit number from their state on the exemption certificate.'
Multistate forms: DOR Exemption Certificate Tax Fact describes the SST Certificate of Exemption as the certificate used in South Dakota; a purchaser buying for resale must list its tax permit number. Seller is relieved if all fields are completed, the certificate is provided at the time of sale, the state due the tax allows the exemption, and the seller does not act fraudulently. Electronic certificates need not be signed. SD businesses whose permit numbers contain UT (use tax) or ET (contractor's excise tax) cannot buy for resale. South Dakota is listed on the MTC Uniform Resale Certificate (MTC note 27 on resale of services); DOR pages opened do not separately discuss the MTC form.
Drop shipments: A supplier delivering into SD must collect SD tax unless the retailer provides an exemption certificate claiming resale; the retailer may use its home-state permit number (or give a valid exemption certificate from its own state). If the unlicensed retailer does not collect, the SD customer owes use tax directly.
Good to know: South Dakota is a full Streamlined Sales Tax member; municipal sales taxes (1-2%) are administered by DOR.
Services may be bought for resale only under specific criteria (purchased for a current customer, not used by the purchaser, delivered without alteration).
Items bought for resale and later used by the business are subject to use tax; knowing misuse of a certificate is a Class 1 misdemeanor with a fine up to 50% of the tax.
Sturgis Rally vendors register separately and do not need a permanent license if that is their only SD event.

Official sources for South Dakota (5)

Checked 2026-10-12. Multistate forms: SST SSTGB Form F0003 · MTC uniform certificate

Not listed above: details the South Dakota agency's pages, forms and rules don't state (2 items, such as a public verification lookup or drop-shipment guidance). Ask the agency before relying on them.

How to buy for resale in South Dakota, step by step

Register for a Sales Tax License with the South Dakota Department of Revenue (free). Register online.
Fill in the Streamlined Certificate of Exemption (Form 2040) with your registration number, what you sell and what you're buying. Official form.
Give it to each supplier before or at the time of purchase; use a blanket certificate for regular suppliers where the state allows one. Suppliers keep it on file — you don't send it to the state.
Only buy items you'll resell this way. Anything you take out of inventory for your own use owes use tax.
When you sell, collect South Dakota sales tax from your customers unless they give you a valid exemption or resale certificate.

States that treat the SST and MTC forms the same way: Georgia, Iowa, Kentucky, Michigan, Minnesota, Nebraska, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Tennessee and Utah. Related: South Dakota sales tax rates, nexus and filing · sales tax nexus checker · South Dakota business licenses

South Dakota resale certificate FAQ

How do I get a resale certificate in South Dakota?

Register for a Sales Tax License with the South Dakota Department of Revenue, then fill in the Streamlined Certificate of Exemption (Form 2040) with your registration number and give it to each supplier. You don't file it with the state; the seller keeps it.

How much does a South Dakota seller's permit cost?

Registration is free. 'There is no fee for a sales or contractor's excise tax license.' A license card is issued once approved. A license is required for each business location (multi-location businesses may qualify for a statewide license with consolidated filing). Apply online or through the Streamlined Sales Tax Registration System.

Does South Dakota accept the Streamlined (SST) or MTC multistate resale certificate?

SST certificate (SSTGB Form F0003): accepted. MTC uniform certificate: accepted. DOR Exemption Certificate Tax Fact describes the SST Certificate of Exemption as the certificate used in South Dakota; a purchaser buying for resale must list its tax permit number. Seller is relieved if all fields are completed, the certificate is provided at the time of sale, the state due the tax allows the exemption, and the seller does not act fraudulently. Electronic certificates need not be signed. SD businesses whose permit numbers contain UT (use tax) or ET (contractor's excise tax) cannot buy for resale. South Dakota is listed on the MTC Uniform Resale Certificate (MTC note 27 on resale of services); DOR pages opened do not separately discuss the MTC form.

Can an out-of-state business use its home-state resale number in South Dakota?

Yes — the purchaser lists the tax permit number from its own state; if the purchaser's state does not issue sales tax permits (e.g., Montana), it lists its FEIN or driver's license number on the completed certificate (Exemption Certificate Tax Fact example). Drop Shipments Tax Fact: 'The retailer may provide their tax permit number from their state on the exemption certificate.'

How long is a South Dakota resale certificate valid?

Single purchase or blanket. A blanket certificate (recurring purchases at least once in 12 consecutive months) continues in force until canceled by the purchaser; certificates do not expire unless the information changes, but DOR recommends updating every three to four years.

How do drop shipments work in South Dakota?

A supplier delivering into SD must collect SD tax unless the retailer provides an exemption certificate claiming resale; the retailer may use its home-state permit number (or give a valid exemption certificate from its own state). If the unlicensed retailer does not collect, the SD customer owes use tax directly.