If your business is making sales in the state of Indiana, you need to register for an Indiana Sales Tax Permit (also known as a Retail Merchant Certificate). Once registered, you’ll be able to collect and remit sales taxes on taxable products or services. You can get started by registering online with the Department of Revenue’s INTIME website or by downloading the form from the department’s website and mailing it in with your $25 registration fee.
When you register, you’ll be assigned a filing frequency (usually monthly or quarterly) and due dates. Make sure to stay on top of these dates, as failing to file by the deadline can result in penalties and interest charges. To avoid penalties, use accounting software or other tools to streamline your processes. This will ensure that you’re always up-to-date and in compliance with state guidelines. Also, remember to familiarize yourself with the rules and regulations of each state you’re doing business in. This will help you avoid any misunderstandings with regards to how sales taxes are calculated and collected.
Indiana Sales Tax Permit Application Process
Obtaining an Indiana Sales Tax Permit involves several steps. Here is a detailed guide to help you through the application process:
Business Information: Legal name, trade name (if applicable), and business address.
Owner Information: Names, addresses, and Social Security Numbers (SSNs) of owners, partners, or officers.
Federal Employer Identification Number (FEIN): Issued by the IRS for business tax identification.
Indiana Taxpayer Identification Number: If you already have one for other business taxes.
Business Structure: Type of business entity (e.g., sole proprietorship, partnership, corporation, LLC).
Online Registration via INBiz
- Visit the INBiz Portal: Go to INBiz, the official business portal for the State of Indiana.
- Create an Account: If you don’t already have an INBiz account, you will need to create one. This involves providing an email address and setting up a password.
- Log In: Use your credentials to log in to your INBiz account.
- Fee: There is no fee for obtaining the permit.
Indiana Sales Tax Exemptions
If your customers are exempt from sales tax, they’ll need to provide you with a valid exemption certificate. It’s important to keep this on file, because if the Department of Revenue ever audits you, it’ll be an essential piece of evidence. If you’re not sure whether your customers have a sales tax exemption, consult the Department of Revenue website for more information
Businesses in Indiana can purchase goods for resale without paying sales tax if they provide a valid resale certificate. Certain items, such as prescription medications and some medical devices, are exempt from sales tax.
Businesses must maintain accurate records of all sales, tax collected, and tax-exempt transactions. Failure to comply with sales tax laws can result in penalties, including fines and interest on unpaid taxes.
The Indiana Sales Tax Permit does not expire, but businesses must remain compliant with filing and payment requirements. Businesses must update the DOR with any changes to business information, such as address changes or ownership changes.