Indiana Sales Tax 2023 - 2024
Indiana sales tax applies to businesses that sell taxable goods or services into the state.
Indiana has a 7% state sales tax. Retailers who sell tangible personal property in the state of Indiana must file a sales and use tax return every month. This return must contain information on all of their eligible taxable sales, including shipping and handling charges. In addition, the return must also include a summary of their tax collection and remittance activity. Indiana Sales Tax returns are due by the 20th day of the month following the end of the filing frequency assigned to you by the state Department of Revenue.
Once you have registered, you will receive a sales tax account number and a Registered Merchant Certificate that must be displayed in all locations. You will also be assigned a filing frequency, which is usually monthly for large businesses.
You must file and remit sales tax by the due date specified by the Department of Revenue. If you miss the due date, the state will impose a penalty. The state also assesses interest and late fees on overdue returns and payments. It is important to stay current with all sales and use tax obligations in Indiana to avoid penalties.
Indiana Sales Tax Requirements
To be required to collect sales tax in Indiana, your business must have a physical presence in the state. This is known as nexus. It could be a store, office, warehouse, distribution center, or storage space. It could also be employees or independent sales representatives working in the state or ownership or lease of tangible personal property such as vehicles. The threshold for economic nexus in the state is $100,000 in gross annual sales or 200 separate sales transactions, whichever comes first.
In addition, sellers must be aware of Indiana’s destination-based sourcing rules. This means that you are responsible for determining the appropriate sales and use tax rate to charge at the ship-to address on all taxable sales, even out-of-state purchases.
How to File Sales Tax in Indiana?
Businesses that sell goods in Indiana must file with the Department of Revenue using form BT-1 or online through INTax. The Indiana Sales Tax filing deadline is the 20th of the month following the reporting period. However, the Department of Revenue may assign high-revenue businesses a different due date. Penalties for late filing and payment are very high. To avoid these penalties, it is important to understand your responsibilities.
Indiana Sales Tax Exemption
If your organization’s sales in Indiana exceed $100,000, you must collect and remit state and local sales tax. However, some nonprofit organizations are exempt from this requirement. To qualify for this exemption, you must register with the Department of Revenue and receive a Retail Merchant Certificate. This can be done through INTIME, the department’s online e-services portal.
