This post was last updated June 22, 2016
Do you charge your customers for shipping? If you do, you next need to determine if you should charge sales tax on those shipping charges. Some states consider shipping taxable, while others do not. Today we’ll look at shipping taxability in South Dakota.
Is Shipping Taxable in South Dakota?
Well that was easy. Thanks, South Dakota! Delivery charges (i.e. shipping charges) on taxable items are taxable. If what you are selling is tax-exempt, then you don’t need to charge sales tax on the shipping charges. If some items in the shipment are taxable and some are not, just calculate what percentage of the shipping charges apply to the taxable item(s) and charge sales tax on that.
South Dakota released a new publication about sales tax on delivery charges in June 2016. While the sentiment is the same (shipping is taxable if the item is taxable) it includes more examples and guidance.
Summary of Shipping Taxability in South Dakota
South Dakota almost always requires sellers to charge sales tax on shipping charges. The only time you wouldn’t charge sales tax on shipping charges are when you are shipping a box full of non-taxable items. If some items are taxable and some are not, charge sales tax based on the shipping charges for the taxable items.
Have questions about shipping taxability in another state? Check out our “Is Shipping Taxable?” state-by-state guide.