Tax on Architects, Engineers and Surveyors in South Dakota
- Nov 19, 2015 | Gail Cole
Architectural services and the services rendered by engineers and surveyors are subject to sales tax in South Dakota, as are several other professional services. That’s not in question. But questions do arise when trying to figure out how and where to source sales of these services.
Which tax rate applies? The rate in effect at the office of the architect (or engineer or surveyor)? The rate in effect at the location of the property? Or the one in effect at the location of the client? Answers vary depending on the details.
Architectural and engineering services
If the client receives the service (for example, picks up plans) at the office of the architect or engineer, the rate in effect at that office applies.
If the client receives the service at another location, the rate in effect at the client’s address applies. If there is no physical address on file, use the billing address.
Construction management services
The rate is based on the location of the project.
The sales tax rate is based on the location of the property surveyed.
When one bill is for multiple services rendered at multiple locations, the tax rate is based on the client’s address (or billing address).
When such a bill is itemized and contains charges for surveying as well as architecture or engineering services, the rate for surveying is based on the location of the property surveyed. The rate for other services is as explained above.
Additional information is available through the South Dakota Department of Revenue.
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