Indiana Seller’s Permit Requirements for Online Retailers

Quick Facts (Indiana Seller’s Permit for Online Retailers)

1) Confirm You Need an Indiana Seller’s Permit (RRMC)

1. You’re selling taxable goods or services delivered to Indiana. Most tangible personal property is taxable unless a specific exemption applies.
2. You have nexus with Indiana. Nexus can be created by:
   1. Physical presence (warehouse, office, employees, inventory stored in Indiana, trade show presence that creates ongoing business activity).
   2. Economic nexus for remote sellers/marketplace sellers based on sales activity into Indiana.
3. You’re not fully covered by a marketplace. If a marketplace facilitator is required to collect Indiana sales tax on your behalf for marketplace transactions, you may still need an RRMC for:
   1. Sales from your own website shipped to Indiana
   2. Non-marketplace channels (phone orders, invoices, B2B direct)
   3. Use tax/self-assessed tax situations

2) Gather What You’ll Need Before You Apply in INTIME

1. Business identity details: legal name, DBA (if used), business address, mailing address, phone/email.
2. Responsible party information: owner/officer names, SSN/ITIN (as applicable), and contact info.
3. Entity info: LLC/corporation/sole proprietor details and formation date.
4. NAICS/business activity description: what you sell and how you sell (website, marketplaces, subscriptions, wholesale).
5. Start date for Indiana taxable sales: the date you first made (or will make) taxable sales shipped to Indiana.
6. Banking details (optional for setup): useful for later electronic payments and returns through INTIME.

3) Register for the Registered Retail Merchant Certificate (RRMC) in INTIME

1. Access Indiana’s registration system: use INTIME to register for Indiana tax accounts.
2. Select the correct tax type: choose sales tax/merchant registration so Indiana issues your RRMC.
3. Enter your business and responsible party details exactly as used for federal and state records to avoid ID verification delays.
4. List your sales channels: indicate whether you sell through your own website, marketplaces, or both.
5. Choose your start date carefully: if you pick a date that’s too early, you can trigger returns due for periods where you had no taxable sales.
6. Submit and save confirmation details: keep your submission confirmation for your compliance file.

4) Understand Indiana’s Single Statewide Rate (Indiana-Specific Rule)

Indiana’s sales tax is a single statewide rate of 7%. Indiana does not impose additional city or county sales tax rates. For online retailers, that means:

1. Ship-to address in Indiana: charge 7% on taxable items shipped to Indiana customers, regardless of whether the customer is in Indianapolis, Fort Wayne, or Evansville.
2. Fewer rate-mapping errors: you generally won’t need local rate tables for Indiana, but you still must tax the correct items and handle exemptions properly.
3. Destination-based sourcing: taxability is tied to delivery into Indiana; keep clean shipping records to prove where items were delivered.

Indiana Sales Tax Snapshot (Rates, Cities, Counties)

5) Set Up Your Online Store to Collect Indiana Sales Tax Correctly

1. Turn on Indiana collection at 7% for taxable shipments to Indiana. Because there are no local add-ons, your main risk is product taxability and exemption handling (not rate variability).
2. Map your product taxability:
   1. Tax typical tangible goods by default.
   2. Confirm treatment of shipping/handling based on how you bill it and whether items shipped are taxable.
   3. Document how your store handles bundles and discounts to ensure the taxable base is correct.
3. Plan for exemptions: If you sell to exempt Indiana buyers (common in B2B), set up exemption workflows and store documentation.

6) Handle Indiana Exempt Sales and Keep the Right Forms

1. Collect exemption documentation at or before the sale. For Indiana, a commonly used exemption certificate is Form ST-105 (General Sales Tax Exemption Certificate).
2. Verify the certificate is complete: buyer name, address, reason for exemption, signature, and relevant registration details.
3. Match certificates to invoices: keep a clear audit trail showing which orders were exempt and why.
4. Renew and re-validate periodically: if your customer’s use changes, your exemption file should reflect it.

7) File Indiana Sales Tax Returns and Pay Through INTIME

1. Watch for your assigned filing frequency: Indiana DOR assigns a filing schedule (often monthly or quarterly). Your INTIME account will show due dates and periods.
2. Prepare your numbers by Indiana delivery address: total gross sales, exempt sales (supported by ST-105 or other proof), taxable sales, and tax collected.
3. File and pay electronically: use INTIME to submit the return and payment on time to avoid penalties and interest.
4. Reconcile platform reports: tie your store/marketplace reports to what you file in Indiana, especially if some channels are marketplace-collected and others are seller-collected.

8) Know When to Update or Close Your Indiana Account

1. Business changes: update your Indiana DOR account if you change legal name, address, ownership, or begin selling new product lines that affect taxability.
2. Stopping Indiana taxable sales: if you cease making taxable shipments to Indiana, close the sales tax account properly in INTIME so returns stop generating.
3. Keep records: maintain sales, exemption, and shipping documentation to support what you collected and what you filed.

Common Mistakes to Avoid (Indiana Online Sellers)

1. Charging different rates by Indiana city or county. Indiana’s rate is a flat 7% statewide; “local rate” tables can cause incorrect over-collection or under-collection.
2. Assuming marketplace collection covers your website. Marketplace facilitator rules may cover marketplace orders, but your direct-to-consumer website shipments to Indiana can still require you to collect and file.
3. Picking the wrong start date in INTIME. An early start date can create back returns that show “zero tax due” but still must be filed.
4. Accepting incomplete exemption certificates. Indiana Form ST-105 should be complete and tied to specific customer relationships; missing details can convert an exempt sale into taxable during an audit.
5. Not separating exempt vs. taxable sales in reporting. Indiana filings must reflect exempt sales supported by documentation, not just “non-taxed” orders.
6. Forgetting to close the account when you stop selling to Indiana. Indiana returns can continue to be expected until the account is closed in INTIME.

Common Questions (Indiana Seller’s Permit