“However, South Dakota`s tax system contains several features that appear to be designed to prevent discrimination or unreasonable burdens on intergovernmental trade. First, the law applies a safe haven to those who operate only in limited activity in South Dakota. Second, the law guarantees that no VAT transfer obligation can be applied retroactively. Third, South Dakota is one of 20 states that have adopted the agreement on the sales and use of streamline lines. (Italic added) This system standardizes taxes to reduce administrative and compliance costs: it requires a single state and single tax administration, uniform definitions of products and services, simplified tax rate structures and other uniform rules. It also allows sellers to access sales tax management software paid for by the state. Sellers who opt for such software are immune to the responsibility of the review. For more information, please see Frequently Asked Questions about North Dakota Remote Sales Tax, SB 2191, SB 2298. If you are in the process of acquiring a business, it is strongly recommended that you go to the Tax Office and inquire about the current status of the potential acquisition. Once you have purchased the business, you will be held responsible for all current sales in North Dakota and tax.
National law exempts some companies from paying south Dakota revenue tax or using taxes on their purchases. Humanitarian organizations and religious and private schools must apply to the department and be approved for exempt status. Your exemption number must be included in the exemption certificate. Exemption numbers for humanitarian organizations include an “RA”; Private schools are an “RS.” For more information on exempt companies, please see the Sales Tax Guide (PDF) and the entity tax document (PDF). These entities are part of these entities: while the physical presence in North Dakota continues to trigger a VAT collection obligation, it is now possible for sellers of non-public companies to have a VAT link with North Dakota. VAT holidays issue certain products for a limited time, usually on a weekend or a week, of sales and usage tax. Each year, about 17 countries offer vat holidays.