Do you need to get a Sales Tax certificate in Indiana State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct business within the state
- You maintain an Inventory in Indiana
- You have employees physically present in Indiana (including independent contractors, Sales persons, representatives, or agents)
- Your business owns or leases tangible personal property within the state
- Your business has economic presence (businesses who make over $100,000 in sales annually or more than 200 transactions)
- Your business services, installs, or repairs property that is sold to end users in Indiana
- Your business has taxable services in the state of Indiana (see below)
What constitutes taxable services in Indiana State?
Any business that installs, services, or repairs property that is sold to Indiana end users.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Indiana?
As a wholesale company conducting business in the state of Indiana, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are not taxable if you separate it from the purchase price of the item being sold on the invoice.
Is there sales tax on drop shipments in the state of Indiana?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Indiana may or may not be required to have sales tax added
Are there any exemptions to taxable items sold?
Groceries, raw materials and machinery, specific items sold to construction companies, medical devices, newspapers, and custom downloadable software are tax exempt