Indiana Sales Tax Filing Update July 2019

What's changing in Indiana?

Indiana has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2019.
  • Amazon began this collection on July 1, 2019.
  • eBay began this collection on July 1, 2019.
  • Etsy began this collection on July 1, 2019.
  • Walmart began this collection on July 1, 2019.
As of July 31, 2019, we have not yet received confirmation that any additional carts currently supported as Marketplace Facilitators in TaxJar's Reporting will begin this automatic collection. 
  • We will update this article with more details as our research team receives more specific confirmation and guidance from the state's DOR as well as the currently supported Marketplace Facilitators.
  • You can view the state's guidance document here.

How does this affect me?

If you sell through a Marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Indiana for sales on and after July 1, 2019 on your TaxJar Dashboard and on your Indiana Transactions page.
  • If you have never set up a filing frequency for Indiana in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.) 
  • If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Indiana listed as a state where you have an upcoming monthly return due in those emails.

How does this affect my TaxJar Report for Indiana?

Your Indiana Sales Tax Report will be updated in August 2019 (when returns for sales after July 1, 2019 are due) to specifically reflect sales that had tax collected and remitted by Marketplaces that are supported as Marketplace Facilitators in TaxJar Reports.

I've never registered for an Indiana license. Do I need to register for a sales tax license in this state now?

This new Marketplace Facilitator law does not affect the current requirements to register for a sales tax license in Indiana.

  • Please note,  the transactions that a seller makes on a marketplace are not counted toward the seller for purposes of determining whether the remote seller has met the economic nexus thresholds. 
  • The Indiana DOR has more details here regarding the requirements for registration. 

I have already registered for a license in Indiana and all of my sales are Marketplace-only sales. Should I cancel my existing registration?

If you are a marketplace seller who has already registered due to physical presence (such as inventory stored in your Marketplace's warehouse) or you have voluntarily registered, you should remain registered, according to the DOR.

  • The Indiana DOR recommends that remote sellers that do not meet economic nexus thresholds and do not have physical presence nexus contact them directly regarding their registration requirements.

Do I still need to file returns in Indiana?

Yes. Once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
  • If you've previously registered, the state expects you to remain registered and continue to file returns. 

If all my sales are Marketplace sales, do I need to file a $0 return?

Yes. If your only sales are Marketplace sales, the state still expects you to remain registered and file a return.  

  • You may be able to request a filing frequency change but would need to contact the state DOR directly. 

Do I need to collect taxes on my Indiana sales through other platforms?

Yes. If you have nexus in the state (physical or economic) and you make sales to customers in Indiana on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Indiana orders that are processed on the other platforms.

I still need to file returns in Indiana. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?

When filing your Indiana sales tax return, you would include the "Marketplace Sales" on Line 1 (Total Sales).

  • Then, enter the total amount of Marketplace sales on Line 2 (Exemption/Deductions):