When you are considering starting your own business in Indiana, you may benefit from taking the time to get a resale certificate in Indiana. The easiest way to decide whether you need one is to ask yourself if you intend to purchase items at wholesale you intend to resell at retail. If so, then you need to get an Indiana resale certificate.
What Is an Indiana Resale Certificate?
An Indiana resale certificate is a special form you use to obtain tax-exempt status from your suppliers and vendors. Instead of charging you state sales taxes, they waive the taxes. Then when you resell the items to your customers, you will collect the sales taxes and remit them to the Indiana Department of Revenue.
Who Needs an Indiana Resale Certificate?
Any business in Indiana that purchases goods and resells them at retail prices needs an Indiana resale certificate. Otherwise, the business pays sales taxes to their vendors and suppliers for their goods. Furthermore, they still have to collect sales taxes from their customers.
In addition, they must keep receipts and accurate records to be able to deduct the sales taxes they paid to their suppliers and vendors when they remit the sales taxes they collected from their customers to the Indiana Department of Revenue. As you can see, this can be quite a hassle. So, it is much easier for small businesses in Indiana to get a resale certificate.
Other Names for an Indiana Resale Certificate
There are several other names for an Indiana resale certificate you need to be aware of, including:
- Indiana Wholesale Permit
- Indiana Wholesale License
- Indiana Wholesale Certificate
- Indiana Reseller’s Permit
- Indiana Reseller’s License
- Indiana Reseller’s Certificate
- Indiana Exemption Certificate
- Indiana Exemption Permit
- Indiana Sales Tax Exemption Certificate
- Indiana Sales Tax Exemption Permit
- Indiana Resale License
- Indiana Resale Permit
Regardless of what you call it, it still functions the same and allows you to have sales taxes waived when purchasing goods from your vendors and suppliers that you intend to resell to your customers.
Are There Goods That Are Not Tax Exempt?
Any goods you purchase for your business’s day-to-day operations are not considered tax-exempt. For example, cleaning supplies, shopping bags, light bulbs, mops, vacuum cleaners, etc. are not exempt from sales taxes since they are not being resold to your customers.
Do All Businesses Have to Accept an Indiana Sales Tax Exemption Certificate?
Most businesses will accept your Indiana exemption certificate. However, legally speaking, businesses are not required to accept it. So, if you have a vendor or supplier that says they will not accept it, it is their right to do so.
In this case, you would need to pay sales taxes and keep your receipts. Then you would deduct the sales taxes you paid when you remit sales taxes collected to the Indiana Department of Revenue.
Can I Use My Indiana Exemption Certificate Out of State?
In most states, you can use your Indiana sales tax exemption certificate out of state. For example, you can purchase goods tax-free you intend to resell from vendors and suppliers in Michigan, Ohio, and Kentucky.
However, vendors in Illinois will not recognize or accept your Indiana resale certificate. Illinois is one of ten states that require businesses to obtain a resale certificate from them to obtain tax-exempt status. So, if you have vendors in Illinois, you would need to get an Illinois resale certificate.
Is an Indiana Resale Certificate the Same as a Seller’s Permit?
An Indiana resale certificate is not the same thing as a seller’s permit. When starting your own business in Indiana, you first must obtain a Registered Retail Merchant Certificate, which is also known as a:
- Seller’s Certificate
- Sales Tax Permit
- Sales and Use Tax Certificate
- Sales Tax ID Number
- Sales Tax License
Once you have your Registered Retail Merchant Certificate, you will use your sales tax ID number to get your Indiana exemption certificate.
Do Indiana Resale Certificates Expire?
Once you obtain your Indiana resale certificate, it never expires. However, you must present a copy of the certificate to each vendor or supplier you purchase goods from because they are required to keep the certificate on file.
How to Get an Indiana Resale Certificate Using FastFilings
FastFilings has simplified the processes required to obtain your Indiana resale certificate to a few simple steps:
- Complete our secure online application form.
- Provide the necessary information.
- Upload any documentation.
- Submit your payment details.
- We file your application electronically directly with the Indiana Department of Revenue.
- Sit back, relax, and receive your Indiana resale certificate within a few business days.
We can also assist you with obtaining your Indiana Registered Retail Merchant Certificate when starting a small business in Indiana. Apply online today or use our online contact form if you have further questions or require additional assistance.