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Sales tax compliance for out-of-state sellers

Posted on November 15, 2018

The CPAs at Teipen Selanders Poynter & Ayres are reminding their business clients that the Indiana Department of Revenue is on the lookout for remote sellers to register and begin collecting and remitting sales tax to Indiana.

This is a hot topic since the Indiana General Assembly passed House Enrolled Act 1129 in 2017, requiring remote sellers to collect and remit sales tax to our home state. Backing up that law, The U.S. Supreme Court issued a landmark decision in South Dakota v. Wayfair, Inc in June of this year, clearing the way for Indiana to enforce the law.

The specifics:

  • A remote seller is a merchant without a physical (brick and mortar) presence in Indiana who sells and delivers products into Indiana.
  • All remote sellers must have a Registered Retail Merchant’s Certificate.
  •  As of October 1, 2018, all remote sellers must collect and remit Indiana’s seven percent sales tax on all taxable transactions – provided they meet the following criteria in the previous calendar year or the current calendar year:
    • The merchant has gross revenues exceeding $100,000 from sales into Indiana
    • The merchant sells goods for delivery into Indiana in 200 or more separate transactions.
  • If a remote seller has already met either of the above criteria for 2017 or 2018, the seller must collect and remit Indiana sales tax on those sales to Indiana from October 1, 2018, forward.
  • Remote sellers who are required to collect sales tax in multiple states (including Indiana) should register with the Streamlined Sales Tax Registration system.
  • Remote sellers that are only required to collect sales tax in Indiana can register online at INBiz.

If you are a retailer requiring more information about this Indiana tax ruling, our CPA team at Teipen Selanders Poynter & Ayres can help guide you and your organization. Or visit Indiana’s remote seller website at www.in.gov/dor/6367.htm.