South Dakota – Taxability of Accounting Services

SALT Report 1780 – The South Dakota Department of Revenue updated their sales and use tax guide for accountants and accounting services. Generally, accounting services are subject to the 4% state tax plus any applicable municipal sales taxes. Or, they are subject to the tax rate in effect in the location where the service is received, which is typically where the client first uses the service or where the client receives any reports or results of the service.

The guide also addresses the following:

  • Determining the correct sales tax rate,
  • The accountant’s responsibility to collect and remit use tax,
  • Deductions allowed for reimbursable expenses,
  • Purchases for resale,
  • Retainer fees,
  • Barter fees,
  • Exempt entities,
  • Municipal sales tax, and
  • Record-keeping requirements

The guide also provides a list of items and services that can and cannot be deducted as reimbursable expenses.

For Further Information:

South Dakota Department of Revenue – Tax Facts Accountants