South Dakota Resale Certificate
Rules, Form & Expiration

Accepted form: Form 2040 (Streamlined Sales and Use Tax Certificate of Exemption). Agency: South Dakota Department of Revenue.

What a South Dakota resale certificate has to say, who can sign one, how long it lasts, and how to produce a signed copy for every vendor in minutes.

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South Dakota resale certificate rules

Certificate form: Form 2040; Form 2040, the Streamlined Sales and Use Tax Certificate of Exemption, is published by the South Dakota Department of Revenue. Our generator produces the Streamlined Sales Tax certificate.
Issued by: The buyer; The buyer fills in and signs the certificate and gives it to each supplier, who keeps it on file.
Registration number: South Dakota sales tax license number; Format: 8 digits followed by a two-letter license type (e.g. ST); may be written with or without dashes. Licenses ending in UT (use tax) or ET (contractor's excise tax) cannot be used to buy for resale. It appears on the buyer's South Dakota sales tax license.
MTC uniform certificate: Accepted; The Multistate Tax Commission uniform certificate can be used for purchases here.
Streamlined (SST) certificate: Accepted; Sellers here may accept the Streamlined Sales Tax exemption certificate.
Out-of-state buyers: Home-state permit accepted; A reseller registered in another state can generally use that registration number.
Blanket certificates: Allowed; One certificate can cover an ongoing series of purchases from the same vendor.
Expiration: No expiration; Exemption certificates do not expire unless the information on them changes. The Department recommends updating them every three to four years. A seller may rely on a certificate until the purchaser files a new one. Sellers keep certificates three years from the date filed.

South Dakota rules in plain English

South Dakota buyers use the Streamlined Sales and Use Tax Certificate of Exemption, which the South Dakota Department of Revenue publishes as Form 2040. Check reason G, Resale. The Department also accepts the Multistate Tax Commission uniform certificate. Enter your South Dakota sales tax license number. A license ending in UT or ET cannot be used to buy for resale. If you are not registered in South Dakota, enter the sales tax number from your home state. If your state issues no sales tax permit, use your FEIN or driver's license number. You complete and sign the certificate and give it to the seller. Do not send it to the Department. You can give a single-purchase certificate or a blanket certificate for future purchases. Certificates do not expire unless your information changes. The Department recommends updating them every three to four years. The seller keeps the certificate for three years. Services can be bought for resale only if bought for a current customer and passed on unchanged. If you later use an item yourself, you must pay use tax on it. Knowingly using a certificate to evade tax is a Class 1 misdemeanor under SDCL 10-45-61. You may also owe a penalty of up to 50% of the tax.

Sources: South Dakota resale certificate guidance · Form 2040

More South Dakota facts

Businesses whose South Dakota permit number contains UT (use tax) or ET (contractor's excise tax) cannot buy products or services for resale. Source
Services can be bought for resale only if bought for a current customer, not used by the purchaser in any way, and delivered to the customer without change. Source
A business that buys an item for resale and later uses it must report and pay use tax on that item. Source
The state sales tax rate is 4.2% (Sales and Use Tax Guide, July 2026), plus any municipal tax. Source
Marketplace providers that meet the $100,000 remote seller threshold collect tax on behalf of their marketplace sellers. Source

What a South Dakota resale certificate must include

The buyer's legal name, business address, and South Dakota sales tax license number, or a home-state registration number where allowed.
The seller's name and address.
A description of the property being purchased for resale, or for a blanket certificate a general description such as "All tangible personal property for resale".
A statement that the items will be resold in the ordinary course of business, signed and dated by the buyer.

Using your South Dakota certificate

Confirm the purchase is genuinely for resale. Using a certificate for supplies or equipment you consume is the most common audit finding.
Give the vendor the signed certificate before or at the time of the sale; a certificate produced after the fact is often rejected.
Issue one blanket certificate per vendor and keep a copy for your records.
Expiration: No expiration. Reissue the certificate whenever your permit number, name, or address changes.

Unlimited signed South Dakota resale certificates

Enter your business once, add each vendor, and download a signed South Dakota certificate on the Streamlined Sales Tax form. One flat yearly price covers every state where you buy inventory.

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South Dakota resale certificate FAQ

What form do I use for a South Dakota resale certificate?

South Dakota uses Form 2040, the Streamlined Sales and Use Tax Certificate of Exemption, published by the South Dakota Department of Revenue. Our generator produces the Streamlined Sales Tax certificate. You get a signed PDF with your business, permit, and purchase details.

Does South Dakota accept the MTC uniform resale certificate?

Yes. South Dakota accepts the Multistate Tax Commission's Uniform Sales and Use Tax Certificate, which is convenient when you buy from vendors in several states. The Streamlined Sales Tax exemption certificate is accepted as well.

Can an out-of-state business use a resale certificate in South Dakota?

Yes, with conditions. A purchaser not registered in South Dakota may give its sales tax ID from any state. A purchaser from a state that issues no sales tax permits may use its FEIN, driver's license or state ID number. SD also accepts a foreign (e.g. VAT) number, and lists 'Not Required' as allowed when no ID exists.

Can I give a vendor one blanket resale certificate in South Dakota?

Yes. A blanket certificate in South Dakota covers every qualifying purchase from that vendor going forward, typically described as "All tangible personal property for resale".

How long is a South Dakota resale certificate valid?

Exemption certificates do not expire unless the information on them changes. The Department recommends updating them every three to four years. A seller may rely on a certificate until the purchaser files a new one. Sellers keep certificates three years from the date filed.

What happens if I misuse a South Dakota resale certificate?

A purchaser who knowingly gives an exemption certificate to evade the tax and does not report it is guilty of a Class 1 misdemeanor. The Secretary of Revenue may also assess a penalty of up to 50% of the tax, in addition to the tax.

When can a South Dakota seller rely on a resale certificate?

A seller who holds a signed exemption certificate showing the purchaser's name, address and license number may rely on it and is not responsible for collecting tax on items generally described by it. Under the SST rules the seller is not liable if it gets a fully completed certificate at the time of sale (or within 90 days) and did not fraudulently fail to collect tax or solicit an unlawful claim. If the certificate is missing at audit, the seller has 120 days after the Department's request to obtain one in good faith.

Nearby states

This page summarizes South Dakota resale certificate rules for general information and is not tax advice. Confirm current requirements with the South Dakota Department of Revenue or your tax adviser. State rules last checked October 1, 2026.

South Dakota Resale Certificate Rules, Form & Expiration