About Indiana's Remote Seller Law
On June 21, 2018, the United States Supreme Court issued its ruling in South Dakota v. Wayfair, Inc., overturning past decisions requiring remote sellers to have physical presence in a state before the state could require the seller to collect the state’s sales tax. With the Wayfair decision, physical presence is no longer required for sellers to be obligated to collect and remit sales taxes, and instead states can impose economic nexus thresholds on remote sellers.
On June 21, Indiana Gov. Eric J. Holcomb offered the following statement regarding the Wayfair decision:
“A lot about our world and economy has changed in the 26 years since our nation’s highest court last ruled on this issue. With the incredible evolution of technologies and the growth of internet sales, this Supreme Court ruling will help level the playing field between our Hoosier-based companies that operate retail stores and out-of-state companies that sell products and services online in our state. We’re taking a careful look at the ruling to better understand its implications for Indiana.”
Indiana law (Ind. Code 6-2.5-2-1(d)) requires a seller without a physical location in Indiana to obtain a registered retail merchant’s certificate, collect and remit applicable sales tax if the seller’s gross revenue from sales into Indiana exceeds $100,000 in the previous calendar year or the current calendar year. Sales into Indiana include any combination of sales of tangible personal property delivered into Indiana, products transferred electronically into Indiana, and services delivered in Indiana.
Note: Prior to January 1, 2024, Indiana had a second economic threshold, and if a merchant met either or both of the thresholds in the current or prior calendar year, they were required to register with the department as a registered retail merchant and collect and remit Indiana sales tax on retail transactions made in Indiana as an agent for the state. This second threshold was for instances where the retail merchant had 200 or more separate transactions into Indiana during the current or prior calendar year. Sales into Indiana include any combination of sales of tangible personal property delivered into Indiana, products transferred electronically into Indiana, and services delivered in Indiana.
Effective January 1, 2024, Indiana only has the $100,000 threshold. If a merchant met the 200 transaction threshold in 2023, but not the $100,000 threshold, they may close their sales tax account in 2024 if they do not have $100,000 in sales in 2024. They will still have to file all required sales tax returns for 2024.
Streamlined Sales Tax Guidance
More Information
- U.S. Supreme Court’s decision in South Dakota v. Wayfair
- More about Indiana sales tax
- Additional information:
- Register in multiple states to collect sales tax using the Streamlined Sales Tax Registration System
- Register to collect Indiana sales tax use Indiana’s INBiz
- File and pay Indiana sales tax electronically using INTIME