Indiana residents must now pay sales tax on out-of-state purchases

Contributed By:The 411 News

Out-of-state merchants must obtain Registered Retail Merchant's Certificate

Indpls. — The protected status Indiana residents enjoy not paying sales tax on out-of-state purchases has come to an end.

Starting October 1, an out-of-state seller that doesn’t have a physical presence in Indiana, but sells products or services for delivery into Indiana must now collect and remit Indiana’s 7% sales tax.

The Indiana General Assembly passed House Enrolled Act (HEA) 1129 in 2017 to require remote sellers to collect and remit sales tax to Indiana. Once the U.S. Supreme Court issued its landmark decision in South Dakota v. Wayfair, Inc. on June 21, 2018, it cleared the path for Indiana to enforce HEA 1129 (2017). DOR announced an October 1 implementation date on a prospective basis.

Sales tax collection and remittance is required if the merchant meets 1 of two criteria: If the seller has gross revenues exceeding $100,000 from sales into Indiana, or, if the merchant sells goods in Indiana of 200 or more separate transactions.

All remote sellers must obtain a Registered Retail Merchant’s Certificate.

Remote sellers who are required to collect sales tax in multiple states (including Indiana) should register with the Streamlined Sales Tax Registration system at www.streamlinedsalestax.org. Remote sellers that are only required to collect sales tax in Indiana should register through the online portal, INBiz, at www.inbiz.in.gov.

Story Posted:10/08/2018

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