64:06:01:41.  Returned merchandise. If a retailer sells tangible personal property or any product transferred electronically and the goods are returned by the customer, the transaction is handled as follows: (1)  If the retailer has included in gross sales the total selling price of the property and has remitted sales tax to the department, the retailer may claim a credit as returned goods for the amount of the sale on a subsequent sales and use tax return if sales tax was returned to the purchaser at the time the goods were returned; and (2)  If a retailer makes a time sale and has included in the gross receipts only the amount of each payment actually received from the time sale, the retailer may claim a credit as returned goods on a subsequent sales and use tax return the amount of the sale reported on prior sales and use tax returns if the retailer has returned to the customer the tax which the retailer collected on payments previously received from the customer.

          Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 28 SDR 178, effective July 1, 2002; 32 SDR 225, effective July 3, 2006; 35 SDR 48, effective September 8, 2008.

          General Authority: SDCL 10-45-47.1(2), 10-45D-13(3), 10-46E-11(3), 10-52A-7(3).

          Law Implemented: SDCL 10-45-29, 10-45D-12, 10-46E-8, 10-52A-6.