Indiana Sales Tax Filing Update July 2019: Marketplace Facilitator Laws
Indiana passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2019.
• Amazon, eBay, Etsy, and Walmart began collecting on July 1, 2019.
Please review general information regarding Marketplace Facilitators and how your TaxJar Sales Tax Reports support these changes here in our FAQ.
In this article, we summarize Indiana's state guidance on the following questions:
- Do I need to register for a sales tax license in Indiana?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on Indiana sales on non-marketplace platforms?
- Do I still need to file returns in Indiana?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
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 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.
Do I still need to file returns in Indiana?
- If you've previously registered, the state expects you to remain registered and continue to file returns.
- If your only sales are Marketplace sales, the state may still expect you to file a zero return.
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):