In conjunction with the new Indiana DOR website INTIME, Avalara has rolled out a new feature that lets you control the vendor discount claimed on your IN ST-103 return. (To make sure AvaTax is set up to work with INTIME, please see ACTION NEEDED: Indiana Department of Revenue transitions to new online portal for filing tax returns)
Currently Indiana allows taxpayers to claim a vendor discount credit for the following amounts, based on prior year tax liability as follows:
- 0.73% up to $60,000 annual sales tax collected
- 0.53% between $60,000 and $599,999 annual sales tax collected
- 0.26% over $600,000 annual sales tax collected
NOTE: If you need to update INTIME and Avalara Returns with INTIME login information, please see ACTION NEEDED: Indiana Department of Revenue transitions to new online portal for filing tax returns
View or update vendor discount rate
View or update the vendor discount rate that Avalara will claim on your IN ST-103 return:
- Go into your IN ST-103 scheduled return: Returns > View and add returns.
- From the list of the scheduled returns displayed, click Details adjacent to the return you want to edit.
- Update the IN Collection Allowance field. (For more information on editing returns, see Set Up Indiana Returns.)
NOTE: For customers with existing IN ST-103 returns, Avalara has carried forward the discount rate from your previous return. However, you are now responsible for maintaining this rate in the event that it changes.
Notices or penalties generated from incorrect discounts
Any notices or penalties generated from incorrect discounts claimed will not be the responsibility of Avalara, unless Avalara claimed a different discount rate than was specified on your scheduled return.
The Indiana Department of Revenue annually reviews the sales tax collection activity from the prior fiscal year (July 1 - June 30) for Indiana businesses. As a result of that review, the collection allowance rate for each business is adjusted based on increases or decreases in sales tax collections. For further information about the collection allowance, please read IN department notice #27 at www.in.gov/dor/3618.htm.
If you have questions about which Indiana discount rate applies to you, you should be able to view this information online through INTIME under letters. If you still have questions, please contact Indiana Department of Revenue.
SST customers: Please continue to upload notices for Indiana collection allowance rate changes into AvaTax. Avalara will continue to manage the collection allowance changes for Indiana SST returns.
If you have any questions about this new field or making sure your Indiana filing calendars are set up correctly please open a support case.