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How To Register For An Indiana Registered Retail Merchant Certificate

How To Register For An Indiana Registered Retail Merchant Certificate

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How To Register For An Indiana Registered Retail Merchant Certificate

When starting a business in Indiana, there are several registrations to take care of. The most common is the Indiana Registered Retail Merchant Certificate (RRMC), which is sometimes referred to as a retailer certificate, seller’s permit, sales tax permit, sales and use tax number, or sales tax registration

The Registered Retail Merchant Certificate is obtained through the Indiana Department of Revenue as a part of applying for the Indiana Business Tax Application.

Check out the rest of this guide to find out who needs an Indiana Registered Retail Merchant’s Certificate, what products and services are taxable, how to register for a permit, and reporting requirements.

Related: Guide to starting a business in Indiana

Who needs a Registered Retail Merchant Certificate in Indiana?

A business must register for a Registered Retail Merchant’s Certificate in Indiana when:

  • A business has a sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
  • Sales representatives work for the company in the state of Indiana
  • Sell a taxable product or service in the state
  • An online business located in Indiana is selling taxable products to Indiana residents
  • A remote seller sells over $100,000 in tangible personal property or has over 200 transactions annually to residents in Indiana

What products and services are taxable in Indiana?

Physical Products

There are a few exceptions, but almost all physical products are taxable when sold at retail in Indiana. Common examples include:

  • General merchandise like furniture, appliances, and clothing
  • Titled or registered items like vehicles

Groceries, prescriptions, medical devices, and certain manufacturing equipment are tax-exempt.

Digital Products

Digital products are taxable in Indiana.

Services

Most services aren’t taxable in Indiana, however, short-term accommodations of 30 days or less are.

How to register for an Indiana Registered Retail Merchant Certificate

A Registered Retail Merchant’s Certificate can be obtained by registering through the Indiana Department of Revenue or mailing in the BT-1 form.

Information needed to register includes:

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax, which it then sends to the Indiana Department of Revenue.

How much is sales tax in Indiana?

The state of Indiana’s sales tax rate is a flat 7%.

When are Indiana sales tax returns due?

The Indiana Department of Revenue will determine a filing frequency based on the expected annual sales volume, monthly, quarterly, semiannually, or annually. Generally, a business collecting over $12,000 in sales tax annually will file monthly.

Filings are due on the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Indiana Registered Retail Merchant Certificate FAQs

How much does an Indiana Registered Retail Merchant’s Certificate cost?

The registration fee for an Indiana Registered Retail Merchant’s Certificate is $25. Every business location will need to register for a separate BT-1 certificate.

How long does it take to get an Indiana Registered Retail Merchant’s Certificate?

Expect up to 2 business days to receive an Indiana Registered Retail Merchant’s Certificate when registering online or 2-3 weeks when applying by mail.

Do you have to renew an Indiana Registered Retail Merchant’s Certificate?

The Registered Retail Merchant’s Certificate must be renewed every two years, but there is no charge to renew. Be mindful that if any information about the business changes before the renewal is due, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Indiana Department of Revenue.

Is a business license the same thing as a sales tax license?

No – A business license and a sales tax permit serve different purposes and are not the same.

A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.

Generally, businesses require both a license and a permit to operate legally and handle taxes correctly.

Related: What business licenses are needed in Indiana

How do I get a wholesale license in Indiana?

A business can purchase items to resell without paying state sales tax. The tax liability is passed from the distributor to the retailer, who will then charge sales tax to the end-user of the item.

Wholesalers and distributors will require a sales tax number and a completed Indiana Sales Tax Exemption Certificate (also referred to as a wholesale license, resale certificate, or reseller’s permit) to document that the items being purchased are for resale.

If you have questions about the Registered Retail Merchant’s Certificate, the Indiana Department of Revenue has more information about sales taxes in Indiana or can be contacted by calling 317-232-2165.

How To Register For An Indiana Registered Retail Merchant Certificate

How To Register For An Indiana Registered Retail Merchant Certificate

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