How to Register for a Sales Tax Permit in Indiana

Who Needs a Sales Tax Permit in Indiana

In Indiana, businesses that sell tangible personal property or provide services subject to sales tax are required to collect and remit sales tax to the state. This includes physical retail locations, service providers, and online sellers. 

The economic nexus threshold in Indiana mandates that out-of-state businesses with over $100,000 in sales or 200 separate transactions in the state must collect sales tax, irrespective of having a physical presence.

Examples include a retailer with storefront locations, a service provider performing taxable services, and an online seller exceeding the nexus thresholds.

Steps to Register for a Sales Tax Permit in Indiana

Follow these steps to register for a sales tax permit in Indiana. 

1. Prepare Your Documents

You will need the following information: 

• Legal Business Name: Make sure it matches the registration with the Indiana Secretary of State.
• Physical Business Address: A valid street address is required; P.O. boxes are generally not accepted.
• Federal Employer Identification Number (FEIN): Obtain from the IRS if not already available.
• Contact Information: Include key contact phone numbers and email addresses.
• North American Industry Classification System (NAICS) Code: Classifies the industry of your business.
• Date of Business Commencement in Indiana: Indicate when your business began or will begin operations.

2. Register Online via INBiz
To register, visit the INBiz portal, select “Business Tax,” then “Retail Merchants Certificate,” provide the required information accurately, review your application, and submit it through the portal.

3. Wait for Approval

It typically takes 5-7 business days to receive your sales tax account number after online registration. Once approved, you will receive your sales tax permit, allowing you to collect sales tax in Indiana.

Handling sales tax compliance can be overwhelming, especially while focusing on business growth. doola’s Bookkeeping services can streamline this process, ensuring compliance from start to finish. 

Understanding Your Sales Tax Responsibilities in Indiana

In Indiana, businesses typically file sales tax returns on a monthly, quarterly, or annual basis, depending on their sales volume. Correct application of sales tax rates is essential, as they vary by location, including state and local taxes. Indiana offers certain exemptions and tax holidays, so understanding these can impact how and when to collect sales tax.

Common Mistakes to Avoid

• Failing to obtain a sales tax permit when necessary.
• Applying incorrect sales tax rates across different jurisdictions.
• Missing filing deadlines and facing penalties.
• Overlooking exempt transactions and not documenting resale certificates properly.

How to Maintain Compliance & File Sales Tax Returns

To file sales tax returns in Indiana, access the INBiz portal to electronically file and remit payments. Utilize automated solutions to simplify tax collection and enhance accuracy. 

Remember that doola can assist with bookkeeping and taxes, ensuring compliance with ease. 

FAQs About Sales Tax Permits in Indiana

How long does it take to get a sales tax permit? 

Typically, the Indiana Department of Revenue processes tax permit applications within 5-7 business days.

Do I need to renew my sales tax permit? 

No, once issued, a sales tax permit in Indiana does not require renewal as long as compliance is maintained.

What should I do if I stop conducting business in Indiana? 

You must officially close your sales tax account by notifying the Indiana Department of Revenue.

Are online sellers required to collect sales tax in Indiana? 

Yes, if they exceed the $100,000 in sales or 200 transactions threshold, online sellers must collect Indiana sales tax.

Stay Compliant With doola 

Registering for a sales tax permit is vital for any Indiana business. Compliance requires meeting deadlines, accurate tax collection, and understanding exemptions. 

Businesses should consider professional assistance to ensure everything is correctly managed. For financial solutions, doola provides guidance to help ensure compliance, allowing your business to flourish. 

Visit the Indiana Department of Revenue for additional information and resources.