Indiana Registered Retail Merchant Certificate

OBTAIN AN INDIANA REGISTERED RETAIL MERCHANT CERTIFICATE | TAX ID NUMBER IN JUST A FEW STEPS

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A seller’s permit is commonly known as a sales tax permit, reseller permit, resale certificate, sales tax exemption certificate, sales tax license or sales and use tax permit. In the state of Indiana it is formally referred to as a Registered Retail Merchant Certificate (RRMC). This certificate will furnish a business with a unique Indiana sales tax number, otherwise referred to as an Indiana Tax ID number (TID). It is essential to know that obtaining this certificate is one of the first steps a business owner should take when starting a business. As the task of collecting sales tax falls on the business that makes the sales and not the consumer, any failure to remit sales tax may lead to interest charges, fines and/or criminal charges.

DO I NEED A SALES TAX PERMIT IN INDIANA?

You need to get a sales tax permit and comply with sales tax laws if you have nexus or a connection to the state of Indiana. Nexus can be triggered by either physical or economic presence.

INDIANA SALES TAX NEXUS:

You will have to comply with the state of Indiana’s individual sales tax laws and apply for a seller’s permit (RRMC) if:

The business’s primary location (online store, storefront, office etc.) where it conducts operations is located within Indiana
The ownership or staff of the business (including sales people, contractors or agents) enter Indiana to conduct business activities
Personal property owned or leased in Indiana is warehoused
You sell taxable products or services in Indiana from out of State (remote sellers that sell in Indiana and meet economic nexus thresholds)
You sell products for shipment within Indiana
You want to hire employees or contractors in Indiana
You own a wholesale company that sells products for resale use in Indiana (in most wholesale trade shows and markets it will be required to present a copy of your Indiana resale certificate in order to participate)

The examples above establish the connection (nexus) between the state and the seller. This allows the state to impose a sales tax collection obligation on the seller.

Additionally, as of June 2018, the Supreme Court of the Unites States ruled that nexus can also be established by an entity conducting economic activity in a state. This is what is known as remote seller nexus. If a remote seller has above a certain amount of sales volume and/or transactions in another state, they are required to register for sales tax. This means that all online sellers on marketplaces (Amazon, Sears, Walmart, Etsy, Big Commerce, Shopify, eBay etc.) may have to potentially collect and pay sales tax.

INDIANA RESALE CERTIFICATE

Another closely related permit is an Indiana resale certificate -also known as a sales tax exemption certificate- which grants your business the benefit of being able to buy goods without paying local sales tax on them. When doing this, you are the primary party responsible for collecting the tax from the customer when you sell the item. To complete the ST-105 form, you will need to provide your Indiana Registered Retail Merchant Certificate TID Number.

HOW TO GET A REGISTERED RETAIL MERCHANT CERTIFICATE IN INDIANA

You can either fill out a paper application and file it in person or you can simply submit an online application. It is strongly recommended that all new businesses file for their sales tax permits through anonline tax registration applicationas it is the easiest and fastest way to apply. For the fastest processing time, please have the following information ready to complete the online application for an Indiana Sales Tax Number:

Business name, physical/ mailing address & phone number
A short description of the business
The owner or officer’s Information
Payment information