State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Indiana (IN)

IN Sales Tax - Name of Tax and General Application:

Indiana imposes a tax on retail transactions made in the state. This tax is called a "retail sales tax". In addition there is a tax imposed on the use, storage or consumption of tangible personal property acquired in a retail transaction. This tax is referred to as "use tax" and only applies where sales tax has not been paid.

IN Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Indiana requires retail merchants who are "engaged in business" in the state to collect and pay sales and use tax. Engaged in business entails a retailer who makes sales of tangible personal property or services for use, consumption or storage who (1) maintains a place of business, (2) has representatives or agents operating, or (3) is required to register as a retailer in the state.

IN Local Tax - Do Localities Impose Tax?

No, Indiana does not imposes local sales tax.

IN Resale Certificate Renewal Agreements:

In Indiana an exemption certificate is used for both exemptions and resales. The certificate is used for sales of tangible personal property for resale.

IN Resale Certificate Renewal Periods

There is no mention of an expiration for exemption or resale certificates.

IN Statute of Limitations

Later of three years from the date the return was filed, from the due date of the return or from the end of the calendar year containing the period for which the return was filed.