Simply multiply the total cost of the item by the relevant sales tax rate to add sales tax to your transaction. For instance, a $100 item would cost $107 if you paid $100 plus $7 in sales tax in a county where the sales tax rate is 7%.
If your company buys products to resell, you might be eligible to utilize a resale certificate to avoid paying sales tax on those transactions. Out-of-state resale certificates are accepted in Indiana as long as they adhere to specific rules, such as having the buyer’s and seller’s names and addresses as well as a description of the products being acquired. However, in order to avoid paying sales tax, the buyer must present the certificate to the seller at the time of the transaction.
Indiana does not have an expiration date for resale certificates. To make sure that your resale certificate stays valid, it is crucial to maintain note of any changes to your business information, such as alterations to your address or legal entity name. You can call the Indiana Department of Revenue’s Sales Tax Division at (317) 232-2240 to check the status of your resale certificate in Indiana or visit their website.
In conclusion, the county and the kind of products or services that are purchased determine the sales tax rate in Indiana, however the statewide rate is 7%. Simply multiply the total cost by the relevant rate to add sales tax to a purchase. Out-of-state resale certificates are accepted in Indiana and are valid forever. You can get in touch with the Sales Tax Division of the Indiana Department of Revenue if you need to check the status of your resale certificate.
In Indiana, it is acceptable to purchase goods and resell them. However, if you are purchasing goods to resell, you can be qualified for a resale certificate, which enables you to buy goods devoid of paying sales tax. It’s crucial to be aware that you might have to pay sales tax on your purchase if you use the things for personal use rather than reselling them.