Checked against South Dakota Department of Revenue pages: September 2026
South Dakota has no separate resale form: you claim the resale exemption on the Streamlined Certificate of Exemption, Form 2040, a multi-state form used to claim exemption on otherwise taxable purchases. South Dakota does not allow every exemption listed on it.[1] A retailer that sells products in South Dakota must have a South Dakota tax permit, and businesses buying for resale must list their tax permit number on the exemption certificate they give the seller.[2]
South Dakota resale certificate at a glance
| Agency | South Dakota Department of Revenue[1] |
|---|---|
| Certificate | Streamlined Certificate of Exemption (Form 2040)[1] |
| Register first? | Yes — South Dakota sales tax license[2] |
| Registration cost | Free[3] |
| How long it lasts | No expiration unless information changes; update recommended every 3-4 years[4] |
| Multistate (MTC) certificate | Not stated by the agency |
| Streamlined (SST) certificate | Yes[2] |
How to get a resale certificate in South Dakota
- The registration is a South Dakota sales tax license, applied for through the Department's online Tax License Application.[4] You can register online with the Department's Tax License Application, or use the Streamlined Registration System to register with several member states at once.[4] There is no fee for a South Dakota sales tax license. A license card is issued once the license is approved.[3]
- Use Streamlined Certificate of Exemption (Form 2040).[1]
- Exemption certificates do not expire unless the information on them changes, but the Department recommends updating them every three to four years.[4]
Giving the certificate to a wholesale supplier
Complete every field on the certificate and give it to the seller to claim the exemption. The form is not submitted to the Department of Revenue.[1]
You can give a single-purchase certificate for one transaction or a blanket certificate that covers future purchases of qualifying exempt items.[4]
Sellers must keep exemption certificates in their records for three years.[2]
Suppliers and buyers across state lines
Out-of-state buyers can use the certificate: on drop shipments your home-state tax permit number is acceptable, and a business from a state that issues no sales tax numbers should list its FEIN.[2]
The South Dakota Department of Revenue pages we checked do not say whether South Dakota accepts the Multistate Tax Commission uniform certificate.
Yes. South Dakota's own exemption certificate is the Streamlined Certificate of Exemption; the Department notes the Streamlined member states developed a Certificate of Exemption usable in those states, and lists South Dakota as a member.[2]
What else the Department of Revenue tells resellers
- If you buy an item for resale but later use it yourself, you must report and pay use tax on that item.[5]
- South Dakota businesses whose permit numbers contain UT (use tax) or ET (contractor's excise tax) cannot buy products or services for resale.[2]
- When a vendor drop-ships to your customer in South Dakota, it must charge South Dakota sales tax unless you give it a properly completed exemption certificate.[2]
- An exemption certificate completed electronically does not need to be signed by the purchaser.[2]
- If you knowingly buy items for resale that you know will not be resold, or give an invalid certificate to evade tax, you must pay the use tax and may be guilty of a Class I misdemeanor and fined up to 50% of the tax owed.[2]
Filing your certificate on Closo Wholesale
Closo Wholesale keeps one resale certificate per state on your buyer account. Open Settings → Resale certificates, choose South Dakota as the issuing state, type the certificate number as printed and add a photo or PDF of the certificate. Each certificate shows its review status on that screen, and a newer South Dakota certificate replaces the old one when you renew.
Common questions
Does a South Dakota resale certificate expire?
Exemption certificates do not expire unless the information on them changes, but the Department recommends updating them every three to four years.
What does a South Dakota sales tax license cost?
There is no fee for a South Dakota sales tax license. A license card is issued once the license is approved.
Does South Dakota accept the Streamlined Sales Tax certificate?
Yes. South Dakota's own exemption certificate is the Streamlined Certificate of Exemption; the Department notes the Streamlined member states developed a Certificate of Exemption usable in those states, and lists South Dakota as a member.
This is general information, not tax advice. Forms and rules change; confirm with the Department of Revenue before you rely on this page.
Comparing states? The resale certificate by state table puts the form, registration and multistate rules for all 50 side by side.
Sources
Every rule above comes from an official South Dakota government page. We record the page and the date we read it:
- dorresources.sd.gov/…/2040 · checked 2026-09-26
- dor.sd.gov/…/exemption-certificate.pdf · checked 2026-09-26
- dor.sd.gov/…/license-requirements-for-sales-use-contractors-excise-tax.pdf · checked 2026-09-26
- dor.sd.gov/…/sales-use-tax · checked 2026-09-26
- dor.sd.gov/…/2026-7_sales-use-tax-guide.pdf · checked 2026-09-26
