Tell Us Where You Collect Tax
Add Indiana to the places where you collect tax. This tells AvaTax to calculate tax on Indiana transactions. See the Indiana Department of Revenue website for details about nexus, registration, and taxes in Indiana.
Before you add Indiana, there are two things you need to do:
- Make sure you have nexus in Indiana. In some states, you may have economic nexus if you're a remote seller.
- Register with the Indiana Department of Revenue
You don't have to select a tax type for Indiana.
"Sourcing" determines the location where a sale is taxed. Indiana is a destination-sourced state.
Add Your Company Locations
Add any physical locations you have in Indiana. This is important for reporting on your return.
After you validate the address when you add a location, make sure it falls in the jurisdictions you expect. If not, you may want to manage your jurisdiction overrides.
If you have locations that are separate entities with different federal identification numbers, you can't consolidate them under the same Indiana tax ID number. They must be reported separately. These locations must be added in AvaTax and their location codes included on transactions.
If you have multiple locations under the same federal identification number, you can consolidate and report them under the same Indiana tax ID number.
Schedule Your Returns
Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.
Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.
- Select form IN ST-103 to report all tax types. Confirm your filing frequency on the registration information provided by the state.
- Make sure you enter your Indiana registration ID in the correct format. The Indiana Tax ID is a ten-digit number. Example: 01234567890. The registration ID for a location is the Indiana Tax ID followed by a three-digit suffix. Example: 0123456789-012
- 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
- Enter your Indiana Collection Allowance rate as a decimal, for example 0.0073 for 0.73%. For more information, see View or update Indiana vendor discount credits in your IN ST-103 return and https://www.in.gov/dor/files/reference/dn27.pdf.
- If the state notifies you that the discount rate has changed, let Avalara know by forwarding the notification or submitting a case.
- Indiana doesn't require prepayments