The Indiana Department of Revenue is reminding remote sellers about the collection of sales tax from Indiana consumers. The department says remote sellers, those without a physical presence in Indiana but selling products or services for delivery into the state, must begin collecting and remitting sales tax to Indiana if they meet certain criteria.
The reminder follows the implementation of House Enrolled Act 1129, which was originally passed in 2017 and was allowed to go into effect following the U.S. Supreme Court’s decision to allow online retailers to charge consumer sales tax. Beginning October 1, all remote sellers are required to collect and remit the 7 percent Indiana sales tax on all taxable transactions under certain conditions, including:
- The merchant has gross revenues exceeding $100,000 from sales into Indiana; or
- The merchant sells goods for delivery into Indiana in 200 or more separate transactions
The criteria has to have been met at any point in 2017 or 2018.
The DOR says remote sellers that are only required to collect sales tax in Indiana can register with the state through the INBiz online portal. Those who are required to collect sales tax in multiple states, including Indiana, should register with the Streamlined Sales Tax Registration system.
You can learn more about Indiana’s remote seller requirements by clicking here.