Remote Seller Information (2023)

  • DOR
  • Business Tax
  • Current: Remote Seller Information

About the Supreme Court's Decision

Pursuant to the U.S. Supreme Court’s 1992 decision in Quill Corp. v. North Dakota,sellers without a physical presence in a state were not required to collect and remit sales tax to that particular state. On June 21, 2018, the Court issued its ruling in South Dakota v. Wayfair, Inc., overturningits prior decision in Quill, such that physical presence is no longer required for sellers to be obligated to collect and remit sales taxes.

On June 21, Indiana Gov. Eric J. Holcomb offered the following statement regarding the Wayfair decision:

“A lot about our world and economy has changed in the 26 years since our nation’s highest court last ruled on this issue. With the incredible evolution of technologies and the growth of internet sales, this Supreme Court ruling will help level the playing field between our Hoosier-based companies that operate retail stores and out-of-state companies that sell products and services online in our state. We’re taking a careful look at the ruling to better understand its implications for Indiana.”

As the Indiana Department of Revenue (DOR) analyzes the contents of the Court’s decision, see our Frequently Asked Questions to better understand how current Indiana laws and filing requirements apply to you. DOR is committed to being transparent in working with the business community to implement this historic decision.

Streamlined Sales Tax Guidance

More Information

Frequently Asked Questions

Note: As we review the U.S. Supreme Court’s decision in South Dakota v. Wayfair, we will be providing frequent updates. Please check back frequently for updated FAQs and guidance to help you understand how Indiana’s laws and filing requirements apply to you. DOR began enforcing Indiana’s economic nexus law on October 1, 2018. That said, any merchant may voluntarily register and remit sales tax to Indiana.

(Video) Remote Seller Sales Tax Update (2019)

Indiana law (IC 6-2.5-2-1(c)) requires a seller without a physical location in Indiana to obtain a registered retail merchant’s certificate, collect and remit applicable sales tax if the seller meets either or both of the following conditions in the previous calendar year or the current calendar year:

  1. Gross revenue from sales into Indiana exceeding $100,000, including sales that are not subject to sales tax or are considered tax exempt; or
  2. 200 or more separate transactions into Indiana.

Sales into Indiana or sales transactions include any combination of sales of tangible personal property delivered into Indiana, products transferred electronically into Indiana and services delivered in Indiana.

  • What is a remote seller?

    A remote seller is a business or person who sells into a state where it does not have a physical presence.

  • What has changed for remote sellers?

    On June 21, 2018, in the matter ofSouth Dakota v. Wayfair, the U.S. Supreme Court overturned the 1992 case ofQuill v. North Dakota.The Court specifically ruled in Wayfair that sellers who do not have a physical presence within a state can be required to collect and remit sales taxes in states where they meet certain economic thresholds.

  • What is the law in Indiana?

    On August 27, 2018, the lawsuit challenging the constitutionality of HEA 1129 was resolved and the Department was authorized to enforce Indiana’s economic nexus law starting October 1, 2018.

  • What is the current status of the law in Indiana?

    On August 27, 2018, the declaratory judgment action challenging HEA 1129 (2017) was resolved and DOR was authorized to enforce Indiana’s economic nexus law starting October 1, 2018.

  • Is this applied retroactively? “I have been selling products into Indiana for a while now. Do I have to remit tax for sales prior to October 1, 2018?”

    DOR began enforcing Indiana’s economic nexus law on October 1, 2018. Sellers that do not have physical presence in Indiana are not responsible for collecting and remitting tax on sales prior to that date. However, purchasers still have a use tax obligation on all such sales including those prior to October 1st.

    If you have already met the economic nexus threshold as of October 1, 2018, or you met it at any point during calendar year 2017, you must immediately begin collecting and remitting sales tax on sales into Indiana. If you have not yet met the threshold, you will be required to collect and remit sales tax immediately upon reaching the threshold.

  • How do I register?

    The easiest way to register for multiple states, including Indiana, is through the Streamlined Sales Tax Registration System. Register directly with Indiana only.

    Note: Aremote seller will generally not be required to register with the Indiana Secretary of State. Refer to the information on the INBiz portal and the Indiana Secretary of State’s website for more information.

  • Should I register to collect sales tax or out-of-state use tax?

    HEA 1129 (2017) specifies that qualifying remote sellers should register to collect sales tax.Any use tax accrued or collected by the seller can be remitted utilizing their sales tax registration without the need for a separate use tax registration.

    Note: that any additional seller locations, whether located within or outside of Indiana, will be required to register as additional locations under the sellers Taxpayer Identification Number (TID).

    (Video) What is economic nexus for sales tax? What is remote seller nexus?
  • What is the Streamlined Sales Tax Registration System (SSTRS)?

    The SSTRS is a quick and easy way to register for a sales tax account in all Streamlined Sales Tax member states. When you register through the SSTRS, you receive sales tax accounts to collect and remit sales tax in all Streamlined Sales Tax full member states. You may also choose to register in any associate member states. Once you are registered, you must collect and remit sales and use taxes in those states.

  • Can I register today?

    Yes. You may register immediately through theStreamlined Sales Tax Registration System or with Indiana’sINBiz portal.

  • Many news articles make reference to states providing free software to vendors. Is this correct?

    DOR does not provide sales tax compliance software. The software provided by states which is referred to in theWayfairdecision and news articles is provided to qualified taxpayers that register through theStreamlined Sales and Use Tax Registration system.The qualifications and requirements to qualify for those services and software can be found at theStreamlined Sales Tax website.

  • What is a Certified Service Provider (CSP)?

    A CSP is an agent certified under the Streamlined Sales and Use Tax Agreement to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases. A CSP is designed to allow a business to outsource most of its sales tax administration responsibilities. See more information.

  • If I have already collected sales tax, what do I need to do?

    If you have collected sales tax on an Indiana sale, you must remit the sales tax to DOR. If you are not already registered, please see theHow do I Register?” question above. Failure to remit can potentially subject you to civil and criminal penalties.

  • Which of my sales are taxable in Indiana?

    Indiana imposes a sales tax on the sale of most goods and tangible personal property.

  • What are the documentation requirements regarding exempt sales made by a remote seller?

    A remote seller will be required to adhere to the same requirements as all other Indiana registered retail merchants. This means that the remote seller will be required to obtain either an Indiana (ST-105) or a Streamlined Sales Tax Agreement certificate of exemption from the customer.

  • What if I meet Indiana’s threshold, but I don’t make any taxable sales in Indiana?

    The threshold applies regardless of whether any of the 200 transactions would have been subject to Indiana sales or use tax or whether any of the $100,000 of revenue was generated by taxable sales.Wholesalers are considered to be retail merchants pursuant to Ind. Code 6-2.5-4-2.Thus, a remote vendor will still be required to register and file returns even if it believes that none of its sales will be subject to Indiana sales or use tax.Note that a retail merchant with annual collections of less than $1,000 will only be required to file a return annually.

    (Video) How to do remote selling to close more deals

    HEA 1129 (2017) includes revenue from “service[s] delivered in Indiana.”Pursuant to Ind. Code 6-2.5-13-1, a service is sourced to Indiana if it is first used in Indiana. Indiana does not generally impose sales tax on services.Therefore, a service provider that meets either component of Indiana’s economic nexus threshold, but does not sell tangible personal property or provide taxable services to Indiana residents will not be required to register.

  • I don’t have a physical presence in Indiana, do I have to register?

    If you sell goods or tangible personal property into Indiana, you will be required to be registered if you meet Indiana’s sales threshold of 200 or more separate transactions or receive gross revenue from sales of more than $100,000 into Indiana in the current calendar year or the preceding calendar year.

  • I make sales through my own website; do I need to collect tax?

    If you are located in Indiana or have a physical presence in Indiana, you must collect and remit sales tax. If you don’t have a physical presence in Indiana, but you sell goods or tangible personal property into Indiana, you will be required to collect tax if you meet Indiana’s sales thresholds of 200 or more separate transactions or earn a gross revenue from sales of more than $100,000 into Indiana in the current calendar year or the preceding calendar year.

  • What is Indiana’s current sales tax rate?

    Indiana’s sales tax rate is 7 percent.

  • How do I file and remit the sales tax to Indiana?

    If you register through the Streamlined Sales Tax Registration System, you can file returns and make payments through a Certified Service Provider (CSP) or using a Certified Automated System (CAS). This will allow you to file for multiple states at one time. If you register as a retail merchant with Indiana only, you are required to file and pay electronically using Indiana’s online portal.

  • What if I am an Indiana business that makes sales into other states?

    Many states have adopted provisions similar to those in HEA 1129 (2017).Those provisions may differ somewhat from those enacted by Indiana and they may have different effective dates.Please refer to theStreamlined Sales Tax website for information regarding the remote seller rules in other states.

    For example:Jeff owns a T-shirt store in Indianapolis. He also sells T-shirts from that Indianapolis location through a website. Jeff should already be collecting Indiana sales tax on any T-shirt sales made at the Indianapolis store or sales to Indiana residents through the website.The Indiana remote seller provisions have no impact on Jeff’s business.He should not collect Indiana sales tax on any sales to customers located outside of Indiana.Since many other states have enacted provisions similar to Indiana, Jeff should determine whether he is required to collect any other states’ sales taxes on sales made to residents those states.

  • Can I voluntarily register to collect Indiana sales tax even if I do not meet Indiana’s threshold?

    Yes. An out of state vendor may voluntarily register to collect Indiana sales tax even if they do not have a physical presence in Indiana or meet either of the economic nexus thresholds. Once an out of state vendor registers to collect Indiana sales tax they are obligated to collect and remit Indiana sales tax on all taxable sales until such time as they cancel their registration and file all required returns.

  • Do the remote seller requirements apply to non-U.S. sellers?


  • Will registering for Indiana sales tax obligate a remote seller to file and pay any other taxes or result in the seller receiving a nexus questionnaire to determine whether the seller has any other Indiana tax obligations?

    HEA 1129 (2017) only applies to Indiana sales tax.DOR does not automatically send out questionnaires or similar inquires to taxpayers that register to collect Indiana sales or use taxes. HEA 1129 (2017) did not obligate DOR to begin doing so.Such inquires will continue to be initiated based on facts and circumstances.

  • What is the effective date of the law in Indiana following the Supreme Court's ruling?

    HEA 1129 (2017) is effective as of July 1, 2017, but DOR was prohibited from enforcing the obligation of remote sellers to collect and remit sales tax until the legal challenges to the law were resolved in court.

    (Video) Remote Seller Sales Tax Update

    On August 27, 2018, the lawsuit challenging HEA 1129 was resolved and the Department was authorized to begin enforcing Indiana’s economic nexus law on October 1, 2018. Pursuant to the prohibition under HEA 1129 (2017) against enforcing retroactively, DOR will not enforce the law prior to October 1, 2018.

    That said, any merchant may voluntarily register and remit sales tax to Indiana prior to October 1, 2018.

  • How does HEA 1129 (2017) impact remote sellers that utilize an online marketplace facilitator?

    HEA 1129 (2017) did not include any provisions directly impacting marketplace facilitators. The threshold applies to a remote seller that utilizes a marketplace facilitator assuming the remote seller is legally making sales to Indiana customers, i.e., the facilitator is not buying the goods from the remote seller and then reselling them to Indiana customers.


How do I get a copy of my Indiana Rrmc? ›

You can easily acquire your Indiana Registered Retail Merchant Certificate (RRMC) online using the Indiana Department of Revenue website.

What is Nexus Indiana? ›

Indiana Tax Nexus

Generally, a business has nexus in Indiana when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives.

What is the BT-1 form Indiana? ›

Purpose: Form BT-1 is an application used when registering with the Indiana Department of Revenue for Sales Tax, Withholding Tax, Out-of- State Use Tax, Food and Beverage Tax, County Innkeepers Tax, Tire Fee, and Motor Vehicle Rental Excise Tax, or a combination of these taxes.

Do I have to collect sales tax if I sell online NJ? ›

Who Must Collect Sales Tax? New Jersey Sellers. In general, every New Jersey business selling taxable items or services must collect and remit New Jersey Sales Tax when such sales are completed by delivery of the item(s) to a New Jersey location or performance of the service in this State.

Do you need a sellers permit in Indiana? ›

In general, you need a sales tax permit in Indiana if you have physical presence or meet economic nexus requirements.

What state has lowest sales tax? ›

Residents of these states pay the least in sales taxes overall:
  • Alaska 1.76%
  • Oregon 0%
  • Delaware 0%
  • Montana 0%
  • New Hampshire 0%
7 Sept 2022

What is the NEXUS rule? ›

August 23, 2022. “Nexus” is the requisite contact between a taxpayer and a state before the state has jurisdiction to tax the taxpayer. Prior to the U.S. Supreme Court's 2018 decision in South Dakota v. Wayfair, a physical presence in the state was required for sales and use tax nexus.

Why is NEXUS required? ›

Nexus is when a vendor has a “substantial physical presence” within another state and is therefore required to collect sales and use tax on the goods sold in that state.

What is the threshold for NEXUS? ›

In most states, the threshold for economic nexus is $100,000 in sales or 200 transactions over 12 months.

Should I get a tax ID number for my home business? ›

You need it to pay federal taxes, hire employees, open a bank account, and apply for business licenses and permits. It's free to apply for an EIN, and you should do it right after you register your business. Your business needs a federal tax ID number if it does any of the following: Pays employees.

Do I need an Indiana tax ID number? ›

You'll need one of these if you're going to hire employees in the state of Indiana, if you're going to sell taxable goods and services in Indiana, or if you plan on owing excise taxes, which apply to regulated goods.

What is an RL 1 form? ›

The RL-1 slip must be filed by any employer or payer that paid amounts such as salaries, wages, gratuities, tips, fees, scholarships or commissions. The information on the RL-1 slip is used by individuals to complete the personal income tax return (TP-1-V).

How can I sell online without paying taxes? ›

The rule of thumb is that if you used the items and then sold them for less than you bought them for, then you owe no taxes on the sale.

How much can you sell online before paying tax? ›

Starting with the 2022 tax year, if your income for online sales flowed through a third-party transaction network like PayPal or Venmo, and that income was greater than $600 for the year, you can expect to receive a 1099-K form.

Can I sell online without charging tax? ›

If your business has a physical presence, or “nexus”, in a state, you are typically required to collect applicable sales taxes from online customers in that state. If you do not have a physical presence, you generally do not have to collect sales tax for online sales.

Do you need a sellers permit to sell UK? ›

Although you do not need a license to sell general products online in the UK, you still have to follow a set of rules. One of these rules is that you need to indicate what your customers need to do to place an order and indicate the total cost of delivery on your website.

Do you need a sellers permit in the UK? ›

Generally speaking, no you don't need any licenses to sell in the UK.

How much does a Wi sellers permit cost? ›

Wisconsin currently charges a $20 registration fee to apply for the Seller's Permit. There are two ways to register for a Seller's Permit in Wisconsin, either by paper application or via the online website.

Which US state has no tax? ›

Which Are the Tax-Free States? As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.

What is the highest taxed state? ›

Highest Taxed States 2022
StateWeighted TaxProperty Tax (per $100K)
46 more rows

Which states are most tax friendly? ›

Seven states do not collect tax on personal income, and Tennessee is poised to join the list:
  • Alaska.
  • Wyoming.
  • South Dakota.
  • Florida.
  • Texas.
  • Nevada.
  • Washington.
12 Sept 2022

Do remote workers create NEXUS? ›

An employee living in a different state would normally not create nexus for the employer, but as a remote worker, that employee attributes presence to the employer through their performance of their employment duties at home.

What triggers tax NEXUS? ›

Nexus Triggers

Having employees work within the state or regularly travel to the state to perform business functions. Holding property (including intangible property and inventory) in the state. Delivering tangible goods to that state's residents (even if by common carrier) Performing services for a client in the state.

Who needs NEXUS? ›

U.S. citizens, U.S. lawful permanent residents, Canadian citizens, Canadian lawful permanent residents and Mexican nationals who are members of Mexico's trusted traveller program, Viajero Confiable are eligible to apply for membership in the U.S./Canada NEXUS program.

What questions do they ask at NEXUS? ›

Frequently asked questions at the NEXUS interview are: “Why do you want the Nexus card?” “How often do you plan to use the NEXUS pass?” “Where do you think you will travel to in Canada /the States?”

Does everyone have to have NEXUS? ›

The driver is responsible for ensuring that all travellers in the vehicle are NEXUS members. If there is a non-NEXUS member in the vehicle, regardless of his/her age, it will result in the loss of the driver's NEXUS membership.

Do you have to pay for NEXUS? ›

The NEXUS application processing fee is a non-refundable $50 (US) for a five-year membership. Children under 18 are free!

How do I start a nexus? ›

The most straightforward method of establishing nexus is to have a physical office with employees in a jurisdiction. Once you've established nexus, your company is responsible for collecting and remitting sales tax in that jurisdiction. However, this concept goes far beyond a physical office.

What are the different types of Nexus? ›

In this article, we will go over what nexus means and its three types: physical, economic, and affiliate.

How is Nexus determined? ›

Nexus determination is primarily controlled by the U.S. Constitution, in which the Due Process Clause requires a definite link or minimal connection between a state and the entity it wants to tax, and the Commerce Clause requires substantial presence.

Do you have to file taxes if you make less than 5000? ›

Do You Have to File Taxes If You Made Less than $5,000? Typically, if a filer files less than $5,000 per year, they don't need to do any filing for the IRS. Your employment status can also be used to determine if you're making less than $5,000.

How do I know if I need a business number? ›

You need a business number if you incorporate or need a CRA program account. You might need a business number to interact with other federal, provincial, and municipal governments in Canada. For more information, go to Canada Revenue Agency registration and provincial or other federal programs.

Does Etsy require a tax ID number? ›

In 2022, Etsy is required to issue a 1099-K form to you and the IRS if your shop reaches $600 USD in sales during the calendar year. Etsy will email you when you reach $250 and $500 in sales and don't have a taxpayer ID (SSN or EIN) on file. Once your 2022 sales reach $500, you must have valid taxpayer details on file.

Do I need a tax ID UK? ›

If a person resides regularly in the UK they will automatically have a NINO allocated to them or can be issued with one on request. A young adult about to turn 16 will be automatically issued with their own NINO, which will be used on a range of official documents for the rest of their life.

What do I put if I don't have a tax ID number? ›

If you don't have a taxpayer identification number (“TIN”) or you don't know your number, obtain Form SS-5, Application for a Social Security Card, Form W-7, Application for I.R.S.

What do I do if I don't have a tax ID number? ›

An individual may have an IRS individual taxpayer identification number (ITIN). If the individual does not have, and is not eligible for, an SSN, he or she must apply for an ITIN by using Form W–7.

Do I need an RL-1? ›

If an employer that is a parent corporation winds up a subsidiary and at least 90% of the subsidiary's property is attributed to the parent corporation, the parent corporation must file the RL-1 summary for the entire year.

What is an RL 3? ›

The information on the RL-3 slip is used by recipients to complete the personal income tax return (TP-1-V), the Déclaration de revenus des sociétés (CO-17), the Partnership Information Return (TP-600-V) or the Trust Income Tax Return (TP-646-V), as applicable.

Can I get my rl1 online? ›

You can use the online services in My Account for businesses to send us: the RL-1 summary only; or. the RL-1 summary and the RL-1 slips.

How much can I sell without paying tax UK? ›

Any personal possessions that you sell (with the exception of your car – check HMRC for more details on this process) that are worth more than £6,000, you'll need to pay Capital Gains Tax.

How much do you have to make selling stuff to pay taxes? ›

Generally, you must pay self-employment taxes if your net profits are $400 or more. Self-employment taxes are Social Security and Medicare taxes. Use Schedule SE with your tax return to help you determine how much tax to pay.

Do I have to pay taxes on selling personal items UK? ›

You may have to pay Capital Gains Tax if you make a profit ('gain') when you sell (or 'dispose of') a personal possession for £6,000 or more. Possessions you may need to pay tax on include: jewellery. paintings.

How much can I sell online without paying tax 2022? ›

For tax years beginning with 2022, if you have transactions totaling $600 or more then you should receive a 1099-K form reporting this income to the IRS. For tax years prior to 2022, the threshold is more than $20,000 in gross sales and have 200 or more transactions on eBay.

Does selling things count as income? ›

If you sell at a gain--that is, you get more than you paid for the item--you have income. If you sell an item for less than you paid for it, you have a loss.

Do you have to pay tax if you sell on Facebook? ›

Your sales may be subject to IRS tax reporting if you sell with shipping on Facebook Marketplace. Download your 2021 sales report to see your sales from 2021. When you sell with shipping on Marketplace, you may receive certain tax forms to help file your taxes.

How much can you sell on eBay before paying taxes? ›

Your sales on online marketplaces like eBay are considered reportable income once they are over a certain amount. Because eBay processes payments for these sales, IRS regulations require us to issue a 1099-K for US sellers who sell $20,000 or more in 2021 and $600 or more in 2022.

How is hobby income taxed? ›

If you earn hobby income, you must report the income on Schedule 1, Additional Income and Adjustments to Income. Schedule 1 gets attached to your Form 1040. But where do you report hobby expenses? Unfortunately, hobby expenses aren't deductible.

How much can you sell and not pay taxes? ›

If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000.

How do I get a copy of my articles of incorporation in Indiana? ›

To obtain a copy of Articles of Incorporation, go to the Indiana Secretary of State Business Page: and complete the following steps. 5. Click on Certified Copies Request - Here you will have the option to print or download your Articles free of charge.

How do I get a copy of my 1099g Indiana? ›

Form 1099-G will be available on claimants' Uplink CSS Correspondence pages by Feb. 1, 2022. Once it is available, you can access your Form 1099-G information on your Correspondence page in your Uplink account. We will mail you a paper Form 1099-G if you have opted into paper mailing or are a telephone filer.

What services are taxable in Indiana? ›

Services in Indiana are generally not taxable. However, if the service you provide includes fabrication, alteration or preparation of a product, you may have to deal with the sales tax on products. Tangible products are taxable in Indiana, with a few exemptions.

How can I reprint my Incorporation certificate online? ›

To find your file copy, you should:
  1. Visit Companies House Service.
  2. Enter your company name in the search bar.
  3. Select your company from the list of search results.
  4. Click on the 'Filing history' tab.
  5. Scroll down to the oldest entry, which should be listed as 'Incorporation', and click 'View PDF'.
6 Feb 2015

How do I get a copy of my articles of association? ›

The Articles of Association for a Limited company are available on the official public record provided by Companies House. A further copy should be retained at the companys Registered Office address or SAIL address.

How do I download an Incorporation document? ›

Step 1: Log in into Ministry of Corporate Affairs portal i.e. MCA. For this purpose, you shall need a User ID and a Password. Step 2: Go to “Get Certified Copies” tab under “MCA Services” tab (extremely right, top second).

What happens if you don't file a 1099? ›

Once the IRS thinks that you owe additional tax on your unreported 1099 income, it will usually notify you and retroactively charge you penalties and interest beginning on the first day they think that you owed additional tax.

What is a 1099 G? ›

Form 1099-G is a report of income you received from the Department of Revenue during the calendar year. The Internal Revenue Service (IRS) requires government agencies to report to the IRS certain payments made during the year because those payments are considered gross income to the recipient.

What is a 1099 form used for? ›

The IRS 1099 Form is a collection of tax forms documenting different types of payments made by an individual or a business that typically isn't your employer. The payer fills out the form with the appropriate details and sends copies to you and the IRS, reporting payments made during the tax year.

What services are exempt from service tax? ›

General Service Tax Exemptions

Any service that is offered to any international organisation or to the United Nations is exempt from service tax. Any service that is offered to units of Special Economic Zones or to Special Economic Zone developers is exempt from service tax.

Which state has the highest sales tax? ›

Four states—Oregon, New Hampshire, Montana, and Delaware—have a combined sales tax of 0%. Here are the 10 states with the highest sales tax rates: California - 7.25%
Sales Tax by State 2022.
State Tax Rate7.25%
Average Local Tax1.31%
Combined Rate8.56%
49 more columns

What types of services do taxes pay for? ›

  • The country's budget. All citizens must pay taxes, and by doing so, contribute their fair share to the health of the government and national economy. ...
  • Defense and security. ...
  • Social Security. ...
  • Major health programs. ...
  • Safety net programs. ...
  • Interest on the national debt. ...
  • Other expenditures.
3 Oct 2022


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