Internet sellers will have to pay state sales taxes on online sales to Hoosiers starting October 1.
(Indianapolis, Ind.) - Indiana residents purchasing products online from out-of-state sellers will soon be charged the state's seven-percent sales tax.
The Indiana Department of Revenue plans to begin enforcing the 2017 online sales tax state law on October 1 “on a prospective basis.”
The law requires retailers who annually sell at least $100,000 in the state or do business with more than 200 Indiana customers to collect and remit state sales tax.
The law was challenged in 2017, but wasn't immediately enforced. The state revenue agency says the lawsuit will likely be dismissed following the U.S. Supreme Court’s June ruling on online sales tax.
According to the DOR, remote sellers seeking to comply with the laws of multiple states, including Indiana, should register with the Streamlined Sales Tax Registration system at www.streamlinedsalestax.org. Remote sellers seeking to comply with only Indiana’s economic nexus law should register through the online portal, INBiz, at www.inbiz.in.gov.
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