- Sales and Use Tax Registration and Liability: Businesses selling tangible goods in Indiana must register for sales and use tax and obtain a Registered Retail Merchant Certificate (RRMC). Use tax complements sales tax and is due when tangible goods are used or consumed in Indiana without prior sales tax collection. Buyers are responsible for reporting and paying use tax on their annual income tax return if the seller fails to collect it.
- Tax Rates and Exemptions: Indiana imposes a 7% statewide sales and use tax on retail sales of tangible goods and certain services, with no local sales taxes. Specific exemptions exist for agricultural products, construction materials, and other defined categories, provided they meet certain criteria. Taxable services include lodging, rentals, and admissions to events, while most other services remain non-taxable unless explicitly defined.
- Nexus Rules and Marketplace Facilitators: Indiana has established nexus rules requiring businesses with a physical presence or economic activity exceeding $100,000 in sales to register for sales tax. Marketplace facilitators must collect and remit tax on sales made through their platforms. E-commerce sellers without physical presence must comply if they exceed the economic threshold, while digital products and services are subject to specific tax rules.
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